You want to sell your jeweler? Then it's good to know what the acquisition market in the field of jewelers looks like. With an aging population, the number of jewelers to sell will inevitably increase significantly in the coming years. Many stores are looking for succession. On the other hand, there are plenty of opportunities for jewelers with an online mindset to grow.
Exactly how many mergers and acquisitions take place each year in the jewelry industry is not known. But the fact that some 40 percent of jewelry store owners are in the age group of 50 or older does mean that there are many business acquisitions of jewelers in the pipeline in the coming years.
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 retail, the sector to which jewelers belong, 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
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 jewelry business includes stores selling jewelry items and timepieces, such as precious stones and jewelry made of precious metals, cutlery and other utensils made of precious metals, watches and clocks and possibly combined with polishing and engraving of objects made of precious metals and repair of timepieces.
In figures, the number of jewelers 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!
To Brookz Academy
A number of trends and developments will inevitably cause changes over the next few years, but also offer jewelers many growth and acquisition opportunities:
The jewelry industry provides products that are a nice-to-have for many customers. The current economic situation makes the products accessible to more people, but the big question is how jewelry entrepreneurs ensure that their products become need-to-haves.
In the luxury segment, the jewelry sector still relies largely on traditional brick-and-mortar channels. But there is an increasingly rapid development of non-store channels, which offer convenience from online shopping, mobile devices and social media. Therefore, it is important for jewelers to have an online strategy from a mobile-first mindset.
Businesses in the jewelry industry generally have a fairly traditional organizational structure and culture. To stay ahead of new competition and seize market opportunities, jewelers will need to innovate. Businesses in the jewelry industry need to get started with innovative thinking, culture change and positioning.
