You want to sell your ladies' and men's fashion business? Then it is good to know what the takeover market in the field of ladies' and men's fashion business looks like.
The number of mergers and acquisitions in the apparel industry fluctuates, and last year the number of acquisitions was relatively high.
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, the sector to which ladies' and men's fashion stores belong, 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).
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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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There are many self-employed people working in this sector - especially in women's clothing stores - and therefore the number of businesses with one employed person is relatively high.
In numerical terms, the number of women's and men's fashion 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 hair salons many growth and acquisition opportunities:
Due to tightness in the labor market, and a lot of downtime due to the effects of the pandemic, there are major staff shortages. It is up to clothing stores to deal with this creatively. Solutions can lie in online offerings, but also by applying technology and automation, Lightspeed research found.
The supply chain has been disrupted for quite a few months, which is having significant consequences for fashion retailers. The supply chain recovered somewhat in early 2022, but is not yet completely out of the danger zone. Retailers are looking at local production options and circular production is also getting more attention.
