You want to sell your home improvement store? Then it's good to know what the takeover market in the field of home furnishing stores looks like. There is strong growth visible in the industry, but it is mainly attributable to continued online spending behavior.
For several years now, the retail industry has been on the rise and this growth is expected to continue.
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 home improvement store 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).
Do the calculation
There are many startups in the market every year, and small-scale organizations, which means that the number of businesses with one person working is relatively high.
Expressed in figures, the number of home furnishing stores 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 home furnishing stores many growth and acquisition opportunities:
The demand for good content is increasing. Retail is an industry subject to change and many chains can learn a thing or two from it. Reaching the target audience by creating good content is a challenge for the retail industry, according to Rabobank, which provides entrepreneurs with tips.
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. A good example is the updated barcode, with which the possibilities are endless.
