You want to sell your plumbing business? Then it's good to know what the takeover market in the plumbing business field looks like. Sustainability and an increase in subscription requests are central to the installation industry. The industry is booming and a consolidation storm has been going on for several years.
Consumers want to rent or lease more and more things, as the demand for the number of subscription types increases. While there is also a lot of focus on sustainability, it will be a generation or two before all boilers are phased out. Construction companies are also facing a shortage of skilled workers, so that is definitely a focus.
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 - which includes a plumbing company - an indicative range of EBITDA multiple 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).
Do the calculation
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.
Download report
The installation industry, which includes plumbers, is growing steadily. Installing boilers cannot be done by just any business starting in 2022, as craftsmanship GO certification will be required from then on. Consumers want predictive data, craftsmanship and subscriptions.
In figures, the number of plumbing 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!
To Brookz Academy
A number of trends and developments will inevitably cause changes over the next few years, but also offer plumbing companies many growth and acquisition opportunities:
Not only gasless boilers, but also sustainable toilets are examples of this sector where there is still plenty of growth potential. The demand is there, the supply often too, but the workforce still leaves something to be desired. It is a craft and, as in other sectors, staff shortages are glaring.
Buying a boiler and having it installed does not meet today's needs. Consumers want to capture the services of the same specialist immediately upon purchase. According to ABN Amro, the focus is increasingly on service, so installers are really building valuable long-term customer relationships. They know what is going on, what needs to be done and can respond accordingly.
According to Rabobank, a few years ago it was already an opportunity to capitalize on digitalization and predictive data, but this development is still in its infancy. Customers want to know what their consumption is in the home so they can save and become more sustainable. By providing insight (digitally) into the consumption of water, gas and electricity as a plumbing company, consumers can start upgrading themselves.
According to the platform Installatie.nl, green and high-tech plumbing is definitely a trend. Smart gadgets focused on convenience and savings are in high demand by consumers. A huge opportunity for the industry, as consumers are willing to pay for it.
Questions? We are at your service every working day from 09:00 - 17:30.
