Fashion, beauty business owners most likely to sell up in 2024

Fashion and beauty business owners are high on a list of those deemed most likely to sell up after a challenging year, according to a new report by Vestd.

The equity management platform’s UK Business Investment Report is based on the latest government figures and reveals that firms currently failing are at their highest level since 2009.

In a list of the 17 ‘leading’ industries where businesses are deemed the most likely to sell up, Fashion & Beauty is placed fifth with 1,644 firms up for sale out of total of 83,425 (one in just over 50 businesses up for sale). 

Top of the list is Hospitality (bars & restaurants) where 14,478 businesses out of 143,000 are likely to sell up (1 in every 9.88 businesses). The total Retail industry is placed seventh with 5,614 businesses at risk out of 549,000 (1 in every 97.6 firms).

The report analysed business data from sale platforms RightBiz and BusinessForSale and then compared the results to the number of registered businesses per industry.

Commenting on the research, Ifty Nasir, founder and CEO of Vestd, said: “It’s been an incredibly challenging time for businesses over the past year and beyond and our data makes it all too clear that the cost-of-living crisis is continuing to hit businesses where it hurts, their bottom line.”

And he advised those looking to sell too. “It’s a difficult landscape for business owners looking to put exit strategies in place. It’s important that you think about this process well in advance and familiarise yourself with the different ways you are able to sell your business and the pros and cons of each,” Nasir said. 

“If you’re planning to sell your business, make sure you’ve got your team engaged and are working to increase productivity. One way to encourage this is for business owners to share a piece of the pie with their employees through enterprise management incentives. This too can also provide welcome relief to the company tax bill and reward your employees in the process.”