You want to sell your DIY store? Then it is good to know what the takeover market in the field of DIY stores looks like. Within retail, the diy (Do It Yourself) industry is one of the biggest growth areas.
For many years, the acquisition market of DIY stores has been stable with about 40 to 80 acquisitions per 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, which includes a do-it-yourself store, an indicative EBITDA multiple range 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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DIY stores have been doing well for years, but are currently evolving.
In numbers, the number of do-it-yourself stores 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 DIY stores many growth and acquisition opportunities:
DIY stores are increasingly moving their customer service to the online (mobile) world. Where it started with social media marketing, webcare and instructional videos, they are now starting to invest in apps. A good example is Praxis' app to measure floors, according to Emerce.
According to the international platform Insightdiy, over 60% of millennials cannot hang a shelf themselves. As a result, there is a great need for handy tools, supporting tips and tricks and instructional videos and blogs. There is a lot of effort put into this not only abroad, but also in the Netherlands.
