You want to sell your packaging company? Then it's good to know what the takeover market in the field of packaging companies looks like. The packaging industry consists of several layers, from paper to plastics and more. There are several issues at play, such as sustainability, personalization and creativity.
Packaging is no longer just a shell, but an additional way to enhance the customer experience. Consequently, the acquisition market is unsettled, but by and large pretty stable.
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 manufacturing and industrial sector - to which a packaging company 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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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.
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Packaging used to consist of glass, tin or cardboard. A little later this was replaced by plastic, but that is no longer of this time, according to Rabobank. Today, there are many options and consumer needs and wants are subject to major changes. The industry is diligently looking for packaging that is both environmentally friendly and convenient and affordable.
In numerical terms, the number of packaging companies looked as follows in 2024(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!
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A number of trends and developments will inevitably cause changes over the next few years, but also offer packaging companies growth and acquisition opportunities:
Government policy is already taking firm steps in the right direction, as plastic bags and packaging are (virtually) banned. It is time to develop sustainable packaging materials, while maintaining the benefits. Think product shelf life, lightweight and hygiene. According to ABN Amro s findings, consumers also consider these weighty factors and are therefore willing to pay extra for them.
In the Netherlands, this does not yet want to get off the ground everywhere, but what is in the barrel does not spoil. According to ABN Amro specialists, the future lies in selling without packaging, especially in supermarkets.
You may see it passing by, but there is still a lot to be invented. Packaging used to be a means of packaging, but today it is so much more. An opportunity to satisfy, excite or convince the consumer. A heartwarming message or offering additional information; it can all be done with multimedia packaging.
It is increasingly common for packaging to be personalized by consumers themselves. Luxury boxes, personalized labels and color of your own choice: it's all possible.
