Jewellery stores in NSW and VIC face a specific valuation challenge: the stock is real and often significant in value, but the goodwill is frequently personal and the buyer pool is narrow. The multiple range is 1.0× to 2.0× SDE for the business goodwill — but the stock is valued and sold separately, and that distinction matters enormously in how the deal is structured.
What the market is paying
| Business type | Typical multiple | Key driver |
|---|---|---|
| Owner-operated, personal client relationships, ageing stock | 0.5–1.0× SDE | Personal goodwill + stock risk |
| Established location, repeat clients, mixed stock quality | 1.0–1.5× SDE | Location value + some transferable goodwill |
| Strong brand, loyal client base, modern stock, good lease | 1.5–2.0× SDE | Brand equity + transferable operations |
Stock: the most complex part of the deal
Jewellery stock is valued at cost — not at retail. Buyers will not pay retail value for inventory, regardless of what it would sell for in the normal course of business. The stock count and valuation is typically conducted by an independent valuer at or near settlement, and the agreed stock value is added to the goodwill price to arrive at the total consideration.
Sellers need to be realistic about aged and slow-moving stock. Items that have been in the display case for three or more years will be discounted significantly by buyers — or excluded from the stock count entirely. Cleaning up the stock before going to market — through sales, consignment returns, or write-downs — will result in a cleaner deal and a faster settlement.
The personal goodwill problem
Like hair salons, jewellery stores often have personal goodwill — clients who buy from the owner because of the relationship, not the brand. When the owner leaves, those clients may not return. Buyers will ask for evidence of how clients interact with the business: do they ask for the owner by name, or do they walk in and browse?
Location and lease
Location is critical in jewellery retail. A long-term lease in a high-foot-traffic location — a shopping centre, a main street, a CBD arcade — is a genuine asset. Buyers will scrutinise the remaining term, the rent as a percentage of revenue, and the options to renew. A jewellery store with three years left on the lease and no option to renew is a very difficult sell.
The buyer pool
The buyer pool for jewellery stores is narrower than for most retail businesses. Buyers are typically existing jewellers looking to acquire a second location, jewellery industry professionals stepping into ownership, or investors with retail experience. The marketing process needs to reach this specific pool — a general business broker without jewellery industry connections will struggle to find the right buyer.
