You want to sell your transportation company? Then it is good to know what the takeover market in the field of transportation companies looks like. The transportation industry is more or less hit by the corona crisis, but meanwhile the market is picking up, consumers are buying more online than ever before and sustainable transportation will continue to develop.
The last few years have seen a growth in the number of consolidations related to the transportation sector. International road transport has gone through a difficult period, due to various lockdowns in various countries. Meanwhile, the market is picking up, we are buying more online than ever before and sustainable transportation will develop, according to the logistics industry.
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 logistics & transportation, the sector to which transportation companies belong, an indicative EBITDA-multiple range of 3.8 to 4.5 is currently in place, 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 Automotive, Transport & Logistics 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 Automotive, Transport & Logistics. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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Goods transport has recovered by 2022, according to ING. International growth is settling down, but global supply chains are still severely disrupted. Scarcity of containers, high transportation rates and new corona varieties also still throw a spanner in the works.
In figures, the number of transportation companies 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 also offer the transportation industry many growth and acquisition opportunities:
Logistics service providers continue to grow, but at the same time, growing e-commerce is causing "leakage" revenue to package carriers and large online retailers such as Coolblue, Zalando and Amazon. Due to the commercial importance of speed and reliability, logistics is becoming an increasing priority here. This is forcing steps in utilization of IT in particular. During the corona crisis, the number of packages transported, so-called e-logistics, increased by over 30% to 525 million.
The number of transportation companies with staff shortages has increased in recent years, according to CBS. The average age of employees is rising faster than in other sectors in the Netherlands. Furthermore, the group of 50- to 60-year-olds in the transportation industry is much larger than the group of 30- to 40-year-olds. In the coming years, many workers will be leaving. It is important for transportation companies to anticipate this.
Lean & Green is a European program that encourages logistics businesses to reduce CO2 emissions by 20% in five years. If the plan for this reduction is approved, they receive a Lean & Green Award. In addition, sustainable measures such as reducing fuel consumption and smarter driving often increase profits. The government encourages transport companies to use greener vehicles, such as cars powered by electricity, hydrogen or LNG.
