You want to sell your dance school? Then it is good to know what the takeover market in the field of dance schools looks like. Dance schools belong to both the education and cultural sectors.
In 2021, the cultural sector suffered a major dip, but presumably it is recovering. Dance schools offer not only recreation, but also education and sports training.
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, to which a dance school belongs, an indicative EBITDA multiple range 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 many startups in the industry every year, which also makes many businesses with only one person working visible. There are no dance schools with more than 20 employed persons.
In figures, the number of dance schools 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 dance schools many growth and acquisition opportunities:
Whereas people used to take dance lessons for entertainment or exercise in certain social classes, it is now encouraged among children as early as elementary school. Taking dance lessons is a fun way for children to exercise and improve motor skills, just like swimming, soccer and fitness.
Within dance, the new trend of mixed reality is perfomance. Dance and theater artists are exploring the new forms a piece can take by running it entirely on high-tech resources. The traditional separation between dancer and audience is being broken up, with the reins being pulled entirely by the audience through iPhones, tablets and virtual reality sets. The audience determines the music and the form. In short: they determine the content.
Crossovers within the cultural sector, such as dance in a museum has been going on for some time, but actively seeking out and exploring other fields of interest is increasingly allowed. Escaperooms in a museum, yoga on the stage, mindfulness training in a concert hall, passing works of art with an audio guide full of classical music.
