You want to sell your tiling company? Then it is good to know what the takeover market in the field of tiling company looks like. Tile setters are part of the construction industry. Together with grouting companies, foundation companies and heating specialists, they make up the specialized construction industry and are also considered finishing companies.
After the crisis a few years ago, the construction industry began to boom. Construction was on the rise and there was no "no" to buy. But in 2019, the nitrogen issue came to light, and that caused quite a bit of uncertainty in the construction industry nationwide. However, the corona crisis created a shortage of specialized builders as individuals began to remodel their own homes en masse. This created huge supply and demand in the merger and acquisition market.
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 - to which a tiling company belongs - an indicative EBITDA multiple range 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
A recent sector report from ING shows that recent growth in the construction industry was limited to 1%. Local smaller construction companies in particular actually saw revenue growth, as many people worked from home and refurbished their living and working spaces. For tilers, this meant re-tiling many plumbing fixtures and trendy residential kitchens.
According to CBS, the industry of specialized construction and finishing companies will look like the following in 2024:
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 in the coming years, but also offer tiling companies many growth and acquisition opportunities:
There are many industries facing a shortage of craftsmen. In the world of tilers, too, new recruits are needed soon. The trade magazine CoBouw reports that the industry is shrinking because there is more demand than the workmen can handle.
By attracting young people who want to learn the trade, the industry can grow. Current craftsmen quit due to physical overwork or reaching retirement age. Alternative forms of work can be used, by employing skilled workers for half weeks. This makes them part-time tile setters and then they do something else. This is in line with the expectations of our time, according to the industry.
In the construction industry, more and more major construction projects are being postponed due to the new nitrogen policy. Although there is an increasing growth to new construction houses, they cannot be built all at once, because too much nitrogen would be emitted. Rabobank expects that by 2023 more and more permits will be granted, allowing more work to be carried out. This of course also affects specialized construction, such as tiling companies.
Sustainability has been a hot topic for some time and the demand for sustainable construction will increase in the coming years, according to ABN Amro. Building sustainably with natural materials and, of course, according to European laws and regulations. Inherent in the construction industry is the increasing demand for solar panels, heat pumps and other energy reducing systems.
Questions? We are at your service every working day from 09:00 - 17:30.
