You want to sell your manufacturing business? Then it is good to know what the acquisition market in the field of manufacturing companies looks like. There are various industries visible within the manufacturing sector, so the trends and figures also vary quite a bit.
For a few years now, the manufacturing industry has been on the rise, which is also increasing employment. There is consumer and business confidence in this industry, but expected investment will be slightly lower in the coming years.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the industrial and manufacturing sector, which includes a manufacturing company, an indicative EBITDA multiple range of 4.6 to 5.5 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
Do the calculation
Want to buy a business or sell a business in the Industry & Manufacturing sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the Industry & Manufacturing sector. Because in any buying or selling process, thorough preparation gives peace of mind, overview and structure.
Download report
Manufacturing companies are in an upward spiral in terms of growth, even with the dampening effects of corona and brexit. Thereby, manufacturing companies that rely on raw materials such as metal are sensitive to economic fluctuations and fluctuations.
In figures, the number of manufacturing companies in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
To Brookz Academy
A number of trends and developments will inevitably cause changes over the next few years, but also offer furniture manufacturing companies many growth and acquisition opportunities:
For a few years now, there has been a pattern in the manufacturing market where businesses choose a niche and specialize in it. Businesses (such as Philips, for example) realize divestitures and increase their market share in one specific product group.
Macro developments are also sometimes a big challenge for manufacturing companies, Rabobank writes. Think of automation, circular production, chain cooperation, local entrepreneurship and mass customization. Consumers want more choice at a good price and also fast delivery.
Global trade is becoming increasingly important. International collaborations are no exception these days. Having products come from the United States or China costs a pittance, and despite the setbacks caused by the corona crisis, our product range will continue to face quite a few outside influences in the coming years. Regional sharing of warehouses, factory halls and logistics resources is also a trend, according to Rabobank.
Because we are high on exports, our country is dependent on foreign economies, mentions ABN Amro. If the global economy shrinks, manufacturing companies in the Netherlands are left with their stock. This has a huge impact on the employment of manufacturing companies. Personnel are already being called upon to work in a different way, because of man-poor production. Fewer people on the factory floor, but people who continue to learn and can act quickly.
