You want to sell a paper industrial business? Then it's good to know what the acquisition market in the field of paper-industrial businesses looks like. The paper industry has many smaller businesses and there seems to be excess capacity, which could lead to more business acquisitions.
The number of mergers and acquisitions in the paper industry is quite 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).
For the industrial & manufacturing sector - which includes paper-industrial businesses - 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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There are many larger organizations operating in this sector, and therefore the number of businesses with two or more employees is relatively high.
In figures, the number of paper industries 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 paper-industrial businesses many growth and acquisition opportunities:
Precisely because of digitalization, the demand for raw materials for corrugated board is increasing enormously. After all, all those online orders must arrive safely at the consumer's doorstep. In paper production, the challenge is to speed up the production process without sacrificing quality.
The number of products that contain plastic and therefore cannot be recycled is enormous. And that the plastic soup saddles future generations with a gigantic environmental problem is now common knowledge. The EU is therefore setting requirements to limit single-use plastic products, such as straws, plates, and packaging. And that presents opportunities for the paper industry.
Besides disinfectants, global demand for tissues, toilet paper and paper towels is on the rise. And this is not only due to the impact of the corona pandemic, but also the increase in wealth. The middle class, which uses these products extensively, is increasing, and with it, the demand for hygiene products.
