You want to sell your pet store? Then it's good to know what the takeover market in the pet specialty business field looks like. Because although millennials are among the largest group of pet owners, this is also the group that no longer buys pet supplies in a physical store, but online.
The number of pet specialty store mergers and acquisitions falls under stores in other items and in that category it fluctuates between 75 and 145.
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 pet specialty store belongs, 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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The number of pet specialty stores has declined slightly over the past year. In figures, the number of pet 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 over the next few years, but also offer pet specialty stores many growth and acquisition opportunities:
We are spending more time at home and, as a result, the demand for pets has also increased. After all, pets offer the quiet but warm companionship that many are waiting for. Of all pet owners, 35% are between the ages of 25 and 40. For a large portion of this group, the pet is a substitute for children who are not there or never will be.
Just like your children, you can also spoil your pets with nice gifts and accessories. Think luxury food, coats, bags, dog leashes, bike trailers, brushes and you name it. The online market for this target group has grown tremendously. Because compared to 2014, this revenue has increased by 274%.
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