You want to sell your bodyfashion business? Then it is good to know what the takeover market in the field of bodyfashion companies looks like. There is strong growth visible in the industry, but this is mainly due to the continued online spending behavior.
The online supply of bodyfashion has never been greater. And as a result, the mergers and acquisitions market in the field of bodyfashion stores is currently in a state of flux.
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 bodyfashion company 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).
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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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The number of bodyfashion companies has declined slightly over the past year. And that probably has to do with the growing online offerings, reducing the number of physical stores.
In figures, the number of bodyfashion companies 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 bodyfashion companies many growth and acquisition opportunities:
Standing out from competitors online is not only done through offerings, but also through strong content marketing. But this is still quite a challenge in retail, according to Rabobank, which provides entrepreneurs with tips.
Developments in artificial intelligence and metaverse are increasingly used by online shops. And for good reason, because it saves a lot of inconvenience for businesses and customers alike. Trying on your best garment right away and having it sent to you, instead of ordering several types and sizes and returning half of them works a lot more efficiently.
Sustainability is an ongoing challenge for any industry, but one that can increase your customer base. Using sustainable materials, reuse or second-hand fashion is really a must for bodyfashion companies.
