You want to sell your floral specialty business? Then it is good to know what the takeover market in the field of floral specialty stores looks like. There is strong growth visible in the industry, but this is mainly due to continued online spending behavior.
The flower market has been on the rise for years. And this is reflected in the number of mergers and acquisitions.
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 floral specialty store belongs - 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).
Do the calculation
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.
Download report
The number of floral specialty stores has declined slightly over the past year. And if we look at the numbers there, we can see that this is probably due to consolidations. In fact, the number of stores with more than 5 employees increased.
In figures, the number of floral specialty stores looked as follows in 2024(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!
To Brookz Academy
A number of trends and developments will inevitably cause changes over the next few years, but also offer florists many growth and acquisition opportunities:
The retail industry is changing, so many floral shops need to upgrade their strategy. Reaching the target audience no longer happens on the high street, but depends on whether you create and share good content online. This is a challenge for the industry, but Rabobank sees the need for this and shares tips with business owners on creating content.
Consumers are exploring and increasingly feeling at home in the online world. Omnichannel is the rule rather than the exception these days, and digitalization is essential for this. Getting a quick basket of flowers from the flower shop is being exchanged for sending flowers automatically as soon as a certain date comes into view. Flowers by mail. It has been around for a while, but its use is increasing.
The world is turning upside down. Themes such as climate change adorn the headlines of every news channel. And as a result, consumers are taking an increasingly conscious look at their buying habits. Are flowers from South America really necessary, or is the local tulip also enough to decorate your home. It is inevitable for entrepreneurs to make their businesses more sustainable and to use this as a selling point.
