You want to sell your butcher shop? Then it's good to know what the acquisition market in the butchery field looks like. Butchers face fierce competition from supermarkets, which are increasingly betting on food concepts. For butcher entrepreneurs, communicating with customers about the brand, its story and ingredients offers an opportunity to differentiate themselves.
According to figures from the Central Bureau of Statistics, the number of butcher shops acquired each year varies between about five and 10. The number of acquisitions is expected to increase in the coming years. Specialty stores have been struggling for years and cannot compete with the supermarket violence, which is going to result in a consolidation battle.
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 agri & food, the sector to which butchers belong, an indicative EBITDA multiple range of 5.4 to 6.1 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).
Do the calculation
Do you want to buy a business or sell a business in the Agri & Food 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 Agri & Food. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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Butcheries include stores selling meat and meat products, possibly in combination with boning, skinning, edge-cutting, cleaning and short-term preservation, to a limited extent slaughtering live purchased slaughter cattle, and manufacturing meat products, salads and snacks.
In figures, the number of butcher shops 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 over the next few years, but also offer butchers many growth and acquisition opportunities:
The 2017 Butchers Monitor by the industry association Royal Dutch Butchers revealed that there are still plenty of opportunities for butchery entrepreneurs, but that there is work to be done. Meat consumption over the period 2014 to 2017 has declined and competition is fierce from supermarkets, which have a much better purchasing position and are therefore competing with specialty fresh produce stores on price.
Big data offers butcher entrepreneurs the opportunity to make informed choices regarding menus, ingredients, dishes, pricing, offerings, staffing, customer preferences and desired customers. By remeasuring after each change, one can continue to improve the concept.
Innovation takes place in food packaging to make products last longer and easier to transport. But above all to combat food waste, a trend that is becoming increasingly important among consumers.
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