You want to sell your trading company? Then it is good to know what the takeover market in the field of trading companies looks like. The Dutch are entrepreneurs at heart. And that is reflected in the number of registered trading companies. The buying and selling market is therefore also very lively.
The number of trading companies in the Netherlands is large. And as a result, there is always movement visible in the mergers and acquisitions market. 2022 is by far the best acquisition year ever for trading companies.
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 wholesale sector - to which a trading company belongs - an indicative EBITDA multiple range 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).
Do the calculation
In figures, the number of trading enterprises 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 trading companies many growth and acquisition opportunities:
Standing out from competitors online is not only done through offerings, but also through strong content marketing. But this is still quite a challenge in the retail sector, according to Rabobank, which provides entrepreneurs with tips.
Consumers increasingly want to be taken care of. You would like to have a vegetable garden, but actually lack the time. A smart app gives you concrete instructions and tips every day, so that with just 5 minutes a day you too can grow your own tomatoes. This clever combination of products and services is gaining ground in retail.
Climate change, finite resources and consumer awareness is accelerating the sustainability of the trading sector. Sustainability is an ongoing challenge for any sector, but one that can increase your customer base. Having and acting on a solid sustainability vision is truly a must for trading companies.
