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.

The 3 sectors with the highest multiple are:

  • 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
  • Retail: 3,25

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