You want to sell your bookstore? Then it's good to know what the takeover market in the bookstore field looks like. Although in recent years we worked more from home and organized fewer activities outside, interest in books has still declined.
Bookstores are having a tough time. Of all retail categories, the world of literature is suffering the biggest decline. From 2019 to 2022, physical bookstores are seeing a 7% drop in sales. Fewer books are also being bought online, which means the market will shrink even more this year.
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 bookstore 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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This sector has a relatively high level of self-employment, with stores with up to five employees absolutely ruling the roost.
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 they also offer bookstores many growth and acquisition opportunities:
Effective actions are regularly visible in the book industry, which have a positive impact on the sale of literature. Last year, for example, over two hundred writers called to buy books from ailing local bookstores, resulting in a significant increase in sales. In addition, events, such as the annual Book Week, work to increase book sales.
According to Boekman - the knowledge center for art, culture and policy - it is essential that bookshops put their online sales channels in order. Regularly seeking collaboration in doing so will collectively create more awareness for the sector.
Netflix, HBO and Videoland we all know how to find, but most of all there is a degeneration in our society. Schools are offering fewer and fewer literature-related classes, and in the process there is less reading and reading aloud at home. A campaign like "I read at home" did have a positive effect on sales of (children's) books, but there are fears about the long-term consequences.
