You want to sell your bar/club? Then it's good to know what the takeover market in the field of bars/clubs looks like.
The hospitality sector experienced a few tough years. Recovery of this sector is now visible, but with inflation, higher costs and staff shortages, the question arises as to how long this growth will continue.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the hospitality, tourism and recreation sector, the sector to which bars/clubs belong, an indicative range of EBITDA multiple of 2.9 to 4.0 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Do you want to buy a business or sell a business in the Hospitality, Tourism & Recreation sector? With this Brookz Sector Monitor we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the Hospitality, Tourism & Recreation sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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There are relatively few self-employed people in this sector, and therefore the number of businesses with two or more employees is relatively high. This is an immediate challenge for the sector, as staff shortages are proving to be a game changer for stable business operations in all sectors.
In figures, the number of bars/clubs in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes in the coming years, but also offer bars/clubs many growth and acquisition opportunities:
Corona not only brought fewer visitors to clubs and bars, but also changed the mindset. Whereas the regular night out didn't get going until midnight, these days most hospitality tycoons also consider 8 p.m. a fine time to start the evening. In addition, consumers are increasingly looking for a real experience, and this is how you as a club or bar can really distinguish yourself from your competitors.
Consumers are more concerned with health and a better world. And that also means they are more consciously choosing vegetarian menus and less alcohol on a night out. This also requires bars and clubs to go along with this health trend.
