You want to sell your store? Then it's good to know what the takeover market in terms of stores looks like.
The number of store mergers and acquisitions has been on the rise since 2018, but experienced a big dip in 2023.
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 store 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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In figures, the number of 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 stores many growth and acquisition opportunities:
As wholesalers vertically integrate, there is more insight into customer needs. Rabobank gives the example of wholesaler Eropartners Distribution, which acquired Christine le Duc. This also puts the wholesaler in direct contact with the target group because of its new position in the chain. This strengthens the availability of products and optimizes the sales process.
That there is a shift from offline to online sales is no secret. That far from all stores have developed their own platform is also a fact. Especially if you are a store owner operating in a niche, then a platform is a godsend. According to Vakcentrum, the number of outlets has already been decreasing drastically since 2015. To keep stores on the streets, the strategy needs to be adjusted.
Integrating the online world into your physical business is a promising trend, according to the Chamber of Commerce. Use an app in the store to instantly check whether a particular pair of pants fits your body and what size you need. And pay with your phone, so you don't have to wait in a giant line at the checkout.
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