Sell my Hardware and DIY Business

I want to sell my hardware and DIY shop

If you are interested in selling your hardware and DIY (do-it-yourself) business, you will need to prepare your business for the sale process, arrange a business valuation and weigh your options when enlisting professional support. To maximise your chances of sourcing a suitable buyer, you may wish to connect with a reputable business transfer agent with hands-on experience and access to a vast database of actively searching buyers.

Selling my hardware and DIY business

The variety of services and materials sold by hardware and DIY businesses are limitless, highlighting the scope for growth, expansion, and recruitment. From supplying home and garden renovation equipment to household DIY materials, the industry contributes approximately £7 billion to the UK economy per annum.

The UK’s highest-grossing DIY and garden centres include B&Q, Wickes and Homebase, however, delivering one-to-one support and project specific advice is often championed by smaller DIY and hardware shopfronts. This creates a gap in the market for small, owner-managed, non-franchise hardware and home improvement businesses.

Supported by the British Independent Retailers Association (BIRA), the trade association for independent retailers actively supports DIY and hardware stores to incorporate sustainability into their business model and digitise their services. The industry is fast-moving as it addresses the change in spending trends due to the coronavirus pandemic by embracing technology, entering the world of ecommerce and participating in global fulfilment networks.

As DIY tutorials and technical ‘how-to’ video tutorials become easily accessible through social media, home renovation influencers that promote a culture of DIY through creative content are rising in popularity. Increasing the desire to own a hardware and DIY, tool supplier or haberdashery business, prospective buyers are searching for their next venture in retail.

Preparing your hardware and DIY business for sale

If you are looking to sell your hardware and DIY business, you will need to prepare it for the open market and plan your next steps meticulously. By selecting a reputable business sale agent with the credentials and experience to facilitate the sale, you can directly communicate with a diverse pool of prospective buyers.

At Selling My Business, our marketing strategy consists of attracting buyers on a local and national level, based on your criteria. If your DIY business is relocatable or can operate remotely through an online shopfront, we can widen the scope to attract a suitable buyer. We will begin by conducting a valuation of your business and producing an information memorandum.

This document will mark one of the first steps to selling your DIY and hardware business. An information memorandum, also known as a sales memorandum, is a formal document that will summarise the business sale opportunity and be used as marketing collateral to prospective buyers.

An information memorandum will typically consist of the following information:

• Company background: Brief description (core services, location), company history, unique selling points (family business), management structure (ownership type, no of employees), trading hours, reason for sale (retirement, health)
• Financials: Turnover and net profit
• Asking price
• Property tenure and lease length, if applicable

If your business is a profitable entity, you may decide to detail the reason for sale, such as retirement. If you wish to retire from your DIY retail business, you may take the business sale route to generate a profit and pave an exit route ahead of your retirement. Selling your business can also open the doors to ambitious prospective buyers looking to own a successful and reputable company in the retail sector.

When sourcing a buyer for your hardware and DIY business, the new owner will need to be knowledgeable of regulatory guidelines to operate the business in a compliant manner. Here are some of the areas prospective buyers will need to be aware of:

• Credit authorisation: If your business extends credit, you will need to be authorised by the Financial Conduct Authority (FCA). This will confirm that your business is operated by ‘fit and proper’ people and follows a suitable business model
• Sale restrictions: You cannot sell a knife to under 18s and special conditions may regulate the sale of hazardous substances
• Insurance: You will need to operate with an active insurance policy in place to protect your business against liabilities and accidents

When interacting with prospective buyers, the Selling My Business team will conduct due diligence checks. By taking reasonable care to confirm the legitimacy of interested parties, you can enter the sale in confidence and minimise disruption to the transaction. By investigating information from credible sources, you can rest assured that the enquiring party is genuine. Founded in 1956, the Selling My Business team have the knowledge and experience required to rank prospective buyers based on their potential to submit an offer, their suitability, and motive.

How much is my hardware and DIY store worth?

To calculate how much your hardware and DIY business is worth, the Selling My Business team will conduct a business valuation. Our highly distinguished team of in-house business valuers have up-to-date knowledge of market conditions and similar sales. The valuation of your business will be based on numerous factors, from company assets, financials and growth potential.

Company assets – Intangible assets, such as goodwill and intellectual property, i.e. trademarks and patents. Tangible assets, such as investments, land, property, machinery, equipment, and inventory

Financial performance – Turnover, net profit and financial targets. Buyers may likely enquire about the financial performance of your business during the coronavirus pandemic

Growth potential – If your hardware and DIY store is in high demand, this could present a growth opportunity to extend trading hours and generate higher turnover. You can extend your core services to offer equipment and machinery rental/hire, homeware products and outsourced installation services from a local supplier 

Reputation – If your business is well renowned in the local vicinity and has a strong customer retention rate, your hardware and DIY business may be more desirable amongst local buyers, raising competition. If your business has a strong social media presence, this can contribute to the reputation of your business and influence how much a buyer is willing to pay

A business valuation can assist with financial planning and help pinpoint how you can increase market worth. Conducting a hardware and DIY business valuation can provide a starting point when pricing your business and help confirm market value. The price of your business will determine the type of buyers you attract, their skill level, industry experience and appetite 

 

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• Previous sales and acquisitions experience
• Sector specialisms and average success rate
• Sales value expectations and growth potential

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Value my hardware and DIY business

When valuing a hardware and DIY shop, the Selling My Business team will require a copy of your company accounts which you will receive on an annual basis from your accountants. Additional documentation that may assist the buyer to appreciate the potential your business offers will be invited. The Selling My Business team will also provide an answer to – how do I value my hardware and DIY business?

Due to the nature of DIY and home improvement stores, your business may carry a variety of physical stock, ranging from low to high value. Your business valuation will take into consideration the value of resources, material, equipment, machinery, and the services on offer from your trade or public counter. By arriving at an accurate price for your business, we can begin advertising the sale opportunity to prospective buyers, supported by our extensive advertising strategy.

Why choose Selling My Business?

We offer a hardware and DIY business valuation to company owners looking to sell their business. The Selling My Business team can also offer a free consultation if you wish to explore the business sale route, plan towards a future sale or kickstart the sale of your hardware and DIY retail business today.

Founded in 1956, we have an extensive database of over 10,000 registered buyers and over 60 years of experience in the trade of facilitating business sales. For more information, contact the Selling My Business team or visit an office near you.