You want to sell your bike store? Then it is good to know what the takeover market in the field of bicycle stores looks like. The bicycle industry is quite visible in the Netherlands, because we all cycle a lot. Bicycles need to be sold, maintained and repaired. This means that the local bicycle shops have not disappeared from our streets in the short term.
Bicycle stores fall under the "recreational goods stores" industry. Since 2009, the number of acquisitions here has doubled, according to the Central Bureau of Statistics. In recent years, the numbers have been somewhat stable and there are about 20 to 25 business acquisitions annually.
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 retail sector - to which a bicycle store belongs - an indicative range of EBITDA multiple of 1.9 to 3.0 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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Want to buy a business or sell a business in the retail 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 retail sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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In the Netherlands, we all cycle a lot. Rabobank research shows that on average we are buying fewer bicycles, but we are making a bigger investment. The electric bike is gaining ground, as is the number of online providers. As a result, competition for specialty stores is fierce, so you have to be very competitive to stand out from massive online providers.
In figures, the number of wholesalers in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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A number of trends and developments will inevitably cause changes in the coming years, but also offer bicycle stores many growth and acquisition opportunities:
Our country is known worldwide for its optimal infrastructure for cyclists, just like Denmark. From the congested cities, you effortlessly cycle into the greenery and quickly reach your destination. The fact that children here go to school by bicycle from an early age is, of course, also an attractive fact for entrepreneurs in the bicycle business.
Climate change requires us to think creatively and efficiently about logistics patterns. We are going electric more often, taking trains instead of planes and getting on bikes for relatively short distances. With the e-bike gaining popularity, it is also possible to cover slightly longer distances by bicycle: an opportunity for entrepreneurs.
Lease cars are in demand, but also expensive and not energy neutral. The demand for lease bikes, aka company bikes, has been rising for some time. Digital publication Tweewieler.nl indicates that every ten days over the past few months the demand for lease bikes increased by as much as 200%!
