You want to sell your water sports company? Then it's good to know what the acquisition market in the field of water sports businesses looks like.
The number of consolidations in this industry has been increasing ever so slightly over the last decade.
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 hospitality, recreation and tourism sector - to which a water sports company belongs - an indicative range of EBITDA multiple of 2.9 to 4.0 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).
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Do you want to buy a business or sell a business in the Hospitality, Tourism & Recreation 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 Hospitality, Tourism & Recreation sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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In our water country, it should come as absolutely no surprise that there is an above-average number of water sports companies located here. However, last year's consolidations and closures due to the pandemic, has reduced the number of water sports companies by 17% in one year.
In figures, the number of water sports 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!
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A number of trends and developments will inevitably cause changes in the coming years, but also offer water sports companies many growth and acquisition opportunities:
Water sports are increasingly seen as a form of relaxation, in addition to being a sport. Wonderful bobbing on the water, while rest is alternated with activity.
Vacationing in your own garden or at least locally: it has been a trend among increasingly aware consumers for years. According to ABN Amro, the water sports sector will revive as people vacation regionally and indulge in activities in nature and on the water.
Literally taking water sports to the next level is a trend. Kitesurfing is turning into kitefoiling and jet skis are transforming into foiling electric jetboards.
Having your own boat no longer seems like a dream for most people, because we don't want to spend time on maintenance. Much more often, therefore, boats are rented for a day out or people borrow the boat from a friend, family member or acquaintance. This means fewer sales of new boats, but more demand for rental boats.
