You want to sell your painting company? Then it is good to know what the acquisition market in the field of painting companies looks like. Digitalization, sustainability and sufficient skilled workers are having a favorable impact on the painting industry. This can positively influence the number of acquisitions and mergers.
It is important for painting companies to look for sustainable alternatives and use digitalization to support their businesses. Customers are going for convenience and making more and more conscious choices, especially when it comes to their environment.
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 construction and installation technology sector, to which a painting company belongs, an indicative EBITDA multiple range of 3.7 to 4.7 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 Construction & Installation Technology sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and a look ahead that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in Construction & Installation Technology. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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A complete contraction is visible in the construction industry, partly due to nitrogen measures. Painting companies work in finishing and are less affected by these influences. Recently, the number of job openings in the industry has actually increased, due to the increased demand for skilled painters. In corona time, the opportunity was actually taken to renovate indoors for a change.
In figures, the number of painting companies (together with the number of glazing companies) looked as follows in 2024(CBS):
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A number of trends and developments will inevitably cause changes over the next few years, but also offer painting companies many growth and acquisition opportunities:
Like other craft professions, there is a shortage of good painters who understand the trade. Many workers are retiring, so the aging population is causing problems. The recruitment of younger craftsmen is decreasing, as more and more self-employed workers are being spotted in the industry. Moreover, the demand for trade specialists is incredibly high. OnderhoudNL concludes in their BrancheBarometer that 74% of business owners surveyed are looking for qualified painters.
Digitalization is also a trend in the construction industry. Whereas in the past the craftsman came by and fixed a project price with a handshake, today the consumer demands transparency. Insight into the materials used, the approach and the rates. Convenience serves man, so keeping track of progress online and consulting the assortment will certainly be in line for B2B, but also for consumers.
Obviously in the corona period, but also the years before, we paid more and more attention to our living space. Comfortable and conscious living is a priority for consumers. We bring less decoration into our homes, buy conscious materials and make a statement with a carefully chosen color in the home. Unique designs and unusual patterns are also chosen more often.
