5 trends in acquisition practice listed
Date: Feb. 23, 2022
Modified November 14, 2023
Written by: Tom Teggelaar
Reading time: +/- 2 minutes
Date: Feb. 23, 2022
Modified November 14, 2023
Written by: Tom Teggelaar
Reading time: +/- 2 minutes
Every six months Brookz, platform for company takeovers, publishes an Takeover Barometer. The Takeover Barometer provides insight into the most important figures and trends from the takeover practice. The periodic information provides more transparency and can be used as a reference point for every professional in this market. Last week, the Takeover Barometer H2-2021 was published. This time 272 advisory firms, which perform 90% of transactions in SMEs, provided figures on acquisition practice. In this news item, the 5 most important trends are summarized and listed for you.
Compared to the figures from the H1-2021 Acquisition Barometer, the Health Care & Pharmaceuticals sector is showing significant growth. In contrast, transactions in the Hospitality, Tourism & Recreation sector remain low as a result of COVID-19.
The biggest drop is found in transactions under €2.5 million. In contrast, the largest increase is found in transactions above €10 million.
| H1-2021 | H2-2021 | ||
| Above €10 million | 11% | +5% | 16% |
| Between €7.5 million and €10 million | 6% | +2% | 8% |
| Between €5 million and €7.5 million | 9% | +3% | 12% |
| Between €2.5 million and €5 million | 22% | -1% | 21% |
| Under €2.5 million | 52% | -9% | 43% |
The table below shows the average multiples paid for a company.
| H2-2021 | Correction | H1-2021 | |
| IT services & Software development | 6,55 | - 0,05 | 6,5 |
| Healthcare & Pharmacy | 6,3 | 0 | 6,3 |
| Agri & Food | 5,65 | - 0,05 | 5,6 |
| E-commerce | 5,65 | - 0,05 | 5,6 |
| Wholesale | 5,5 | 0 | 5,5 |
| Industry & Manufacturing | 5,35 | - 0,05 | 5,3 |
| Business services | 4,95 | 0 | 4,95 |
| Media, Advertising & Communications | 4,4 | 0 | 4,4 |
| Construction & Installation Engineering | 4,05 | - 0,05 | 5,3 |
| Automotive, Transportation & Logistics | 3,6 | 0 | 3,6 |
| Hospitality, Tourism & Recreation | 3,2 | + 0,2 | 3,4 |
| Retail | 2,95 | + 0,15 | 3,1 |
Furthermore, the average EBITDA multiple for Dutch SMEs is: 4.85%. According to the Barometer, multiples are higher in our neighboring countries:
This makes the Netherlands relatively inexpensive for SMEs.
Consulting firms were also asked about the most common reasons for selling businesses. Among these, lack of succession is the most common reasons.
Finally, the lead time of a sale was scrutinized. In this, as shown in the table below, there are considerable differences.
The most important observation is that the Netherlands is relatively cheap for SMEs. Price differences are between 10 to 30% higher among our neighboring countries. You can read and download the full report and the Takeover Barometer H2-2021 via this link.
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