Takeover prices rose slightly in the second half of 2020

The 6-monthly Brookz takeover barometer in the Netherlands has shown that the takeover market held up very well in the second half of 2020. A prediction for the rest of 2021?

As this acquisition barometer aimed at the SME segment is conducted on a regular basis, it provides an insight into a number of interesting trends:

  • The number of sales transactions increased by 15% in the second half of 2020.

  • The number of transactions remained generally stable according to the advisers. Only one in five advisors said the number of assignments had decreased.

  • The average EBITDA multiple rose back to 4.85 (coming from 4.70) and almost reached the pre-Covid-19 level of a multiple 4.95.

  • The average EBITDA multiple per sector can vary greatly:

    • Sectors that still experienced an increase:

      • IT Services & oftware Development: 6.5 (+0.05)

      • Healthcare & Pharmaceuticals: 6.25 (+0.1)

      • E-commerce: 5.55 (+0.15)

    • Sectors with a decrease:

      • Media, Advertising & Communication: 4.4 (-0.05)

      • Hospitality, Tourism & Recreation: 3.35 (-0.25)

      • Retail trade: 3,05 (-0,2)

  • 40% of the surveyed advisers expect the market to pick up further in 2021.

Source: Acquisitions barometer Brookz.nl