Hardware / Lumber / Supply

According to market research company Statista, total sales brought in by hardware stores eclipsed the previous year's total by $10 billion in 2020. Unlike a lot of retailers, many hardware stores thrived with the onset of the COVID-19. With people mostly restricted to the confines of their homes, we saw a renewed interest by consumers towards home improvement projects. Since most hardware retailers were labeled as essential and able to keep their doors open, owners were able to take advantage of this surge as many reported historical bests in profits.

Many hardware store owners are asking: "Is now the right time to sell?"

While many hardware stores have enjoyed unprecedented growth since the pandemic struck, the focus for many now shifts to the future. As we continue to slowly emerge and return to normal life, it'd be naïve to believe that consumer shopping habits will remain or even return to where it was pre-pandemic.

As of the conclusion of 2023, the marketplace remains an advantageous place for business owners to transition their business. Immediately following the onset of COVID-19 in March of 2020, the buyer pool for businesses increased dramatically due to historically low interest rates, high unemployment and low job satisfaction. Since 2022, however, rapid rates of inflation and interest rates spiking beyond even pre-pandemic levels left many business owners wondering if they could still earn maximum value for their business.

The simple answer remains "YES!"

Year-over-year, the business resale market has continued to demonstrate that buyers are interested in purchasing strong performing businesses regardless of economic conditions. BizBuySell, the largest online business-for-sale marketplace, published their market insights report at the conclusion of Q4 in 2023. Here's what they said:

                 "Businesses bought in 2023 showed stronger financials compared to the previous year,                             also exhibiting a U-shaped pattern with values surging in the 4th quarter. Median cash                               low grew 13% in the final quarter, finishing the year with a 4% annual gain, while median                           revenue gained 16% and 6% respectively. This activity underscores small business                                       resilience despite current economic conditions. It also suggests buyers are still willing to                             invest in great opportunities."

Over the last 40 years, Sunbelt Business Brokers has transitioned literally hundreds of hardware businesses.  While much of this success can be attributed to the highly experienced and knowledgeable business intermediaries stationed in 140+ offices throughout the United States, Sunbelt Franchise Resales (SFR) has partnered with ACE Handyman Services (formerly Handyman Matters) to help educate their network of business owners on maximizing value and the business selling process. Additionally, SFR has had tremendous success in selling the ACE Hardware brand - the leading hardware retailer cooperative and parent company to ACE Handyman Services - throughout our history. As a result, this has given us keen insights into how to effectively market this type of business and has allowed us to play an integral role in helping owners achieve their succession goals.

If you are an owner contemplating the sale of your business, it's never been more critical and beneficial to consult with someone who understands the marketplace, the selling process and how to appropriately value and market your business in order to maximize value.

Ready to explore selling your business? Contact us today for a free/no-obligation discussion and complimentary value range analysis!