You want to sell your wholesale wood and building materials business? Then it is good to know about the takeover market in the field of wholesale wood and building materials. During the pandemic, demand for lumber and building materials among individuals was particularly high and availability was low. And as a result, empty shelves continue to be a common challenge for all wholesale and retail wood and building materials retailers.
The number of mergers and acquisitions of wholesalers in wood and building materials moves with the economic climate. As a result, a stable trend does not materialize. The year 2021 has an unprecedentedly high number of mergers and acquisitions in the wood and building materials sector.
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).
An indicative range of EBITDA multiple of 5.0 to 6.0 is currently used for a wholesale wood and building materials business, 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 relatively many large businesses in this sector, and therefore the number of businesses with two or more employees is relatively high.
In figures, the number of wholesalers 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 they also offer wholesalers in wood and building materials many growth and acquisition opportunities:
Wood is a natural product, and therefore already has a sustainable image. When processing, treating and modifying wood, alternative and sustainable materials are being used more often. And the demand for applications of wood as an alternative to stone is increasing. And this also means that the demand for wood is increasing.
Raw materials are getting scarcer. Whether we are talking about steel, wood or oil, recycling is key within our production processes. Therefore, the government also has the acceleration of the circular economy as an important spearhead, so there are great opportunities here for wholesalers in wood and building materials.
