You want to sell your plastics and rubber processing business? Then it's good to know about the takeover market in the field of plastics and rubber processing companies. The challenging oil market combined with persistent personnel shortages and the call for greater sustainability in this industry is expected to bring about many changes for plastics and rubber processing companies in the coming years.
The number of mergers and acquisitions in the plastics and rubber industry has been stable for 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).
For the industrial & manufacturing sector - which includes plastics and rubber processing companies - 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 small and medium-sized businesses in this industry. As a result, the number of plastic and rubber processing companies with 2 or more employees is relatively high.
In figures, the number of plastic and rubber processing 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!
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A number of trends and developments will inevitably cause changes in the coming years, but also offer plastics and rubber processing companies many growth and acquisition opportunities:
Only 14% of all plastic packaging is recycled. And thus the plastic and rubber industry has a considerable share in CO2 emissions. Consumers are therefore increasingly opting for alternatives that are sustainable. To remain relevant in this business, these businesses need to drastically reduce their environmental impact and increase circularity.
Not only consumers demand sustainable processes and products, but for investors too, sustainability policies or meeting Environmental, Social & Governance (ESG) criteria are more and more decisive for their investment portfolio.
Crisis in the oil market and persistent personnel shortages create major challenges in supply chain continuity. Collaboration in the industry is needed to bring about essential change in this regard, said the CEO of the U.S. Tire Manufacturers Association.
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