You want to sell your kitchen and bathroom specialty business? Then it is good to know what the takeover market in the field of kitchen and bathroom specialty stores looks like.
The number of acquisitions has been somewhat stable for years, but does show an increase in 2021.
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 kitchen and bathroom specialty stores 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).
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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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Unlike many other industries, kitchen and bathroom specialty stores have very few start-ups and sole proprietors. Most businesses belong to chains and consist mainly of larger teams with more than two employees.
In figures, the number of kitchen and bathroom specialty 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 kitchen and bathroom specialty stores many growth and acquisition opportunities:
There is still a lot of room for development for kitchen and bathroom specialty stores. Consumers are increasingly looking for unique customized products, moving away from mainstream solutions. This is not only the case for the terraced house, but trendy living concepts such as tiny houses are also demanding more customized solutions from specialty stores.
For consumers, it has become more important to make the living space, both inside and outside, completely to their liking. Painting, building, repairing and styling: consumers know where to find kitchen and bathroom specialists, writes ABN AMRO.
With partial working from home as well as the still attractive interest rate trend, the relocation market is booming. And kitchen and bathroom specialty stores are sailing along nicely on this trend. Delivery times due to raw material issues sometimes make it difficult for specialty stores to win over customers. If, as a business, you can guarantee short delivery times, you will be a real winner in this market.
