You want to sell your sign company? Then it's good to know what the acquisition market in the field of sign companies looks like. Sign companies deal with specialty advertising. There is a huge shortage of true marketing and advertising specialists, which partly explains the high number of mergers and acquisitions.
The number of sign company mergers and acquisitions will peak in 2022. Due in part to the global pandemic, and the growth of Web3, online projects have taken precedence over home-based work. As a result, sign professionals have been and continue to be in high demand.
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 media, advertising and communications sector - which includes a sign company - an indicative EBITDA multiple range of 3.3 to 4.0 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 Media, Advertising & Communications 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 Media, Advertising & Communications. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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The number of sign companies increased 46% over the past three years. There are relatively many self-employed people working in this sector, and therefore the number of businesses with one employed person is quite high.
In numerical terms, the number of sign 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 over the next few years, but also offer sign companies many growth and acquisition opportunities:
Sustainability is a prominent topic in almost all industries, so it can't be left out in sign businesses either. Plastic window film and chemical light boxes are out of date, so the industry is turning to energy-saving, ecological films and recycled paper.
Sign businesses often seek the intersection with the interior design sector, currently tapping into trends around indoor nature in (corporate) spaces. Nature imagery, plants and natural materials make people feel better. This is beneficial for hospitals, healthcare facilities and town halls, as well as a smart idea for employers. When it is not convenient to use real natural materials, a sign company can provide a realistic wall visual.
