Dutch SMEs are growing in value!

After a period of financial uncertainty related to inflation and interest rates, investors returned to the market for buying Dutch companies. Growth is especially noticeable in the segment of small and medium-sized businesses. According to the largest Dutch online platform for selling companies - Brookz, in the first two months of 2024, the number of company offers for sale increased by 15%. At the same time, the number of buyers selecting a business to buy increased by 20%. It looks like investors have thrown caution to the wind and are ready to invest! Accordingly, prices for companies went up. 

What are mkb companies?

The segment of small and medium-sized businesses - mkb (midden- en kleinbedrijf) - in the Netherlands includes companies with a relatively small number of staff and turnover. Companies in the sector are divided into:

• average: up to 250 employees, annual turnover not exceeding 40 million euros or annual balance sheet not exceeding 20 million euros,
• Small: up to 50 employees, annual turnover not exceeding 12 million euros or total balance sheet not exceeding 6 million euros,
• Micro: up to 10 employees, annual turnover not exceeding 700 euros or annual balance not exceeding 000 euros.

It is important to know that the mkb segment can include not only companies, most often registered in the BV form, but also individual enterprises in the EMZ form. To classify a business as a mkb segment, EMZ owners must have hired employees.

Source

What's happening in the mkb market?

In 2023, it was quite difficult to sell the company: buyers put forward additional demands, often making the value of the company dependent on what financial results were planned after the purchase. In the first two months of 2024, Brookz has already recorded 12% more acquisitions than in the same period in 2023. On average, a company's price is its gross profit multiplied by 4,75. In the second quarter of 2024, Brookz expects mergers and acquisitions (purchases of companies) to grow by 3-5%.  

Thus, Dutch companies have once again demonstrated their ability to overcome difficulties. It is expected that investor interest in their acquisition will remain quite high.

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