You want to sell your notary office? Then it's good to know what the takeover market in the notary office field looks like. The notary market went through a big dip a few years ago, but is now up and running again. There is definitely a rate pressure present, but there is plenty of work due to the real estate market, among other things.
Society is becoming more legalistic, but consumers are more empowered. Competition is too eager for exorbitantly high fees, so there are tensions in the market. Many homes are being sold and more and more businesses are being established, but with the entry of industry outsiders, competition is high and fees have to come down.
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 business services sector, to which a notary's office belongs, 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).
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Do you want to buy a business or sell a business in the business services 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 business services sector. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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Society is held together by legal frameworks and this is certainly not going to change. This has also made us think more about recording our wishes and needs, both in life and in death.
In figures, the number of notary offices in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes in the coming years, but also offer notary offices many growth and acquisition opportunities:
The Royal Notarial Association publishes annual fact sheets related to the industry. For last year, there was an increase on all fronts. As many as 50,000 more deeds were passed, more candidate notaries were added and the number of wills increased by 4% compared to a year earlier.
The housing market seems almost indestructible. With constant demand for more homes and an average asking price that continues to rise, things can't get any worse for notaries. According to Rabobank forecasts, the housing market continues to grow and this has certainly become a reality, as 7,000 more mortgage deeds were signed again this year, according to the KNB.
Rabobank identifies a trend regarding the digitization of the industry. With the advent of comparison sites and more online services, transparency in notary fees is necessary. Thereby, the pressure on fees is increasing, because there is always a cheaper office to find in the region.
For many consumers, and entrepreneurs, the legal world is a vague concept. It is too difficult and takes place too much behind closed doors. There is a lot of focus online on standardized services, but by proactively providing customized services, there are opportunities for notary offices. Think about giving online educational sessions, visiting entrepreneurial networks and being active on social media, according to ABN Amro.
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