You want to sell your rental business? Then it's good to know what the takeover market in the rental business field looks like. Rental businesses are thriving, as both the private and business markets prefer to pay monthly installments or one-time payments, rather than make large investments reality.
The number of rental company mergers and acquisitions has averaged between 35 and 55 over the past decade, according to the Central Bureau of Statistics. But the year 2022 was an absolute outlier with 75 acquisitions.
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 business services sector, which includes a rental company, 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).
Do the calculation
There are many startups in the industry every year, which also makes many businesses with only one person working visible.
In figures, the number of rental companies in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes over the next few years, but also offer rental companies many growth and acquisition opportunities:
Getting ourselves from A to B is important, but owning a vehicle is not always a priority anymore. We rent our means of transportation on vacation or look for alternative solutions, such as public transportation, shared cars or electric bikes, according to Rabobank.
Whereas having your own toolbox used to be a requirement for every household, today it is not strange not to have your own tools in your home. Today's generations find it easy to rent tools or machines from time to time, eliminating the need for large investments AND taking up extra space.
In addition to leasing or renting transportation equipment and tools, it is increasingly normal to rent consumer items. Think about leasing white goods, home appliances or even entire beds. It's all about service and convenience.
With the rise of cloud computing, other revenue models are emerging, including software rental, according to ABN Amro.
