You want to sell your toy store? Then it's good to know what the takeover market in the toy store field looks like. Physical toy stores are struggling to exist. As a business owner, you can't escape strong online visibility. Sustainability and TikTok are also important trends for increasing revenue.
The number of mergers and acquisitions in this industry has been stable for years.
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 toy 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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Due to online shopping, the number of physical toy stores has been declining for years. In this industry, many larger organizations are visible and therefore the number of businesses with two or more employees is relatively high.
In figures, the number of toy 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 toy stores many growth and acquisition opportunities:
Toys are well found online. And although that cute little toy store sells awesome toys, increasingly, this physical store has to lose out to online competitors. This is not only because of convenience, but price is also an important consideration. So as a toy store, you can't be left behind with an online shop. As a toy store, bet on rock-solid content marketing to increase your customer base, according to Rabobank.
With over 1 billion active users, TikTok is can make or break toys. The trend TikTok toys previously caused a 2264% increase in the search term fidget toys. And this means great opportunities for toy retailers. Know the tiktok trends and hitch a ride on this success.
Consumers increasingly prefer durable toys to plastic ones. These are better for our planet, but are also usually produced in slightly less violent shades than the primary color palette. And therefore these toys fit the sustainable ambition as well as the interior.
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