„Welcome to our new Outdoor Industry Insight. We observe vivid activity in the market. Big players continue to consolidate strategically via M&A and private equity investors still play a major role. A difficult market environment and strong competition are creating M&A opportunities as companies seek to differentiate themselves. What is more, especially in the EU where the market is currently declining, SMEs are put under pressure and economies of scale are more important than ever, thus benefiting the big players.“
-Global Outdoor Market is expected to grow with a CAGR of 6.4 % reaching EUR 60M in 2024. Growth is mainly driven by US and Chinese markets
– For the first time, the European outdoor industry recorded an overall minus of 1% in 2018 compared to the previous year. Possible reasons a very strong 2017 and the very hot summer of 2018. Germany, representing the largest market, slightly declined by -0.9% in value while the second and third largest markets of the UK and France grew in value by 1% and 0.4% respectively
– The climbing segment is the only one in which year-to-year growth could be registered. Climbing and bouldering have established themselves as leisure sports suitable for the masses. This trend is underlined by the fact that, for the first time, climbing will be accepted as an Olympic discipline in Tokyo 2020
Source: 360 Research Reports, European Outdoor Group
Key Performance Indicators Peer Group
– The Peer Group contains internationally-listed companies which differentiate in product portfolio, size and relative competitive advantage
– Valuations in recent years have remained at a consistently high level, underlining the ongoing attractiveness of the industry. However, saturation reflected by low sales growth expectations is challenging the market and forcing companies to adapt product portfolios and to grow towards niche markets. Despite that, EBITDA multiples ranging between 8.5x and 13x as well as a solid return on equity ratio of 16% can be observed
Source: Infront Analytics – Sazun Global Outdoor Peer Group
EV/EBITDA NTM (Next 12 months)
Stock Price Development Peer Group
Want to know more?
If you would like to learn more about the valuations and deals of your industry, the transaction mentioned above or generally our way of working, we would certainly be happy to demonstrate our m&a PLUS® principle in a confidential meeting.
Just get in touch and we will share our experience on how to grow businesses with long-lasting partnerships.
With passion for M&A,
Your SAZUN Team