You want to sell your cab company? Then it's good to know what the acquisition market in the field of taxi companies looks like. Strong growth is visible in the industry. Demand for transportation and hauling has been high for years. During the lockdowns it was mainly about start-ups in parcel delivery, while in recent months there has been a lot of growth in passenger transport, according to CBS.
The number of mergers and acquisitions in this 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).
In automotive, the sector to which cab companies belong, an indicative range of EBITDA multiple of 3.8 to 4.5 currently applies, 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
Over the past two years, the number of cab companies has increased. In figures, the number of cab 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 cab companies many growth and acquisition opportunities:
In cities, the need for a private means of transportation is decreasing. Increasing urban growth, changing and the emerging sharing economy are also increasing demand for cab transportation. Fewer and fewer people own a car or do not get a driver's license, and this presents opportunities for the cab driver.
In the logistics sector, especially freight transport, the impact of data integration is already visible. UPS 's route optimization not only works mega efficiently, but it saves 10 million gallons of gas and 100,000 tons of greenhouse gas emissions annually as a result. For cab companies, data integration can provide more efficient operations and better customer service.
Customers want as much value for money as possible, and for cab companies, this means excelling in customer service. Providing an experience that exceeds the competition and keeps customers coming back can make all the difference here.
