You want to sell your wholesale sports and recreation business? Then it is good to know what the takeover market in the field of wholesale sports and recreation looks like. After hard times during the pandemic, recovery is visible in the culture, sports and recreation sector.
The number of mergers and acquisitions in wholesale sports and recreation increased sharply last year due to the global pandemic. However, there was a dip in 2023.
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 a wholesale sports and recreation business, an indicative range of EBITDA multiple of 5.0 to 6.0 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 wholesale 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 wholesale sector. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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There are many self-employed and two-person businesses in this sector, and therefore the number of businesses with two or fewer employees is relatively high.
In figures, the number of wholesalers 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 wholesalers in sports and recreation many growth and acquisition opportunities:
The focus on a healthy lifestyle is increasing, but full schedules seem to have no end in sight. And as a result, more and more people are looking for a way to exercise when it suits them, says the trend scenario of Sport Future Exploration. Like watching your favorite series on demand, on demand sports is also becoming increasingly important. Digital video instructions and sports offerings throughout the day and night are opportunities to meet this demand.
Color Runs, mudmasters and marathons are becoming increasingly popular. And although Corona called a halt to these leisure activities, the events are now back on the calendar. These types of events offer athletes an experience that goes beyond the usual treadmill workout. Socializing, performing and being part of a bigger picture, in addition to getting fit and strong, are important elements in this overall experience.
Data plays an increasing role in our lives. From monitoring your own health to knowing if your local supermarket is crowded when you want to do some shopping. Data tells you exactly what to expect. Businesses are responding smartly by organizing and marketing products based on customer data analytics.
