You want to sell your wood processing business? Then it is good to know what the takeover market in the field of wood processing companies looks like. The demand for wood has increased tremendously recently and the growth is expected to continue.
The number of mergers and acquisitions in the wood processing industry has been stable for years. In the last two years, the number of consolidations seems to be increasing, and with the developments in the wood market, this is expected to increase.
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).
For the industrial & manufacturing sector - which includes wood processing companies - an indicative EBITDA multiple range of 4.6 to 5.5 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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Want to buy a business or sell a business in the Industry & Manufacturing 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 Industry & Manufacturing sector. Because in any buying or selling process, thorough preparation gives peace of mind, overview and structure.
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The number of wood processing companies has increased by almost 20% over the past 2 years. In figures, the number of wood processing 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 wood processing companies many growth and acquisition opportunities:
The trade magazine 'Houtwereld' highlights the advantages of wood as a building material. Wood is sustainable, stress relieving and also reduces our nitrogen problem. In addition, more wood is being used in interior construction because it brings nature a little closer again. Wood is hip!
Essential raw materials such as wood, steel and other building materials are becoming increasingly scarce. And that is why many companies are focusing on reusing materials. The government is also focusing on accelerating a circular economy. For wholesalers of wood and building materials, there are opportunities in sourcing circular materials.
