Recent trends in the Dutch takeover market
Twice a year Brookz, a Dutch online takeover platform, polls about new developments in the takeover market in the Netherlands. The trends that are emerging in the first half of 2020 will probably not be any different on the Belgian market.
The following findings stand out from Brookz's report:
The number of acquisitions decreased by 41% compared to the second half of 2019, when very strong growth was recorded; this means that the number of acquisitions in the first half of 2020 is the same as a year ago.
10% of the deals were above € 10 million; 64% of the deals had a deal value of less than 2.5 million euros.
The average used EBITDA multiple for the Dutch market has decreased from 4.95 to 4.7.
IT services and SW development :6,45
Healthcare & pharmacy :6,15
Agri & Food :5,60
The 3 sectors with the lowest multiple are:
Catering industry, Tourism and Recreation :3,60
Automotive, Transport and Logistics :3,60
On average, 57% of the deal is financed by debt. A vendor loan (loan by the seller) was agreed upon in 75% of the cases.
An earn-out, in which part of the acquisition price is paid on future results, was agreed in 25% of the acquisitions.
Almost 50% of the acquisition consultants expect an improvement of the acquisition market in the second half of the year.
Source: Brookz takeover barometer H1 2020