Other

Sell or just shut down? Here’s how to tell

OtherMay 06, 2015

Sell or just shut down? Here’s how to tell

Howard Feller of MMG Advisors gives jewelers contemplating retirement a primer on evaluating which is the best option for their business: selling it or closing up shop.

Howard-Feller_article.jpg
Howard Feller is a partner at MMG Advisors, an investment banking, strategic and financial advisory firm servicing the retail, fashion, textile, jewelry and beauty sectors. He can be reached at H.Feller@mmgus.com.

As you head toward retirement, if your situation is similar to many privately held jewelry businesses, you may not have an obvious successor in place. It also may seem unlikely that you’d find a buyer from the outside. Under these circumstances, jewelry store owners across the country have simply been closing their doors

Many owners have no idea what their business is worth, whether there’s even a market for it or where to get help to determine its value or identify a buyer. The purpose of this article is to review the broader options and outline the various factors that amount to a viable, marketable business. If they add up, what elements most determine the business’s sale value, and where does the owner go from there?  

Your store may lack a succession plan. But it’s well-respected and profitable. You’ve had a long-standing business in a particular location, and it controls a meaningful market share with a loyal customer base. These factors are a great start towards salability. And whether or not the sale will generate a premium for you as owner, selling the business certainly enables you to recover more of your equity in the business than would simply closing the doors and liquidating the inventory.  

Factors that contribute to salability and valuation
The key to successfully selling any business is demonstrating attributes that ensure sustainability, allowing the business to thrive in future years. Higher valuations typically result from companies having a number of these attributes in place. For a jewelry retailer, there are a few defining characteristics that buyers will look for; they are as follows.

1) A jewelry business may command more of a premium if it holds exclusive distribution rights to certain coveted brands. This is particularly true in the watch category. But equally significant might be exclusively representing a successful, in-demand jewelry designer. 

2) While not an absolute necessity, having an e-commerce component in place is a favorable factor, particularly if your online presence provides you with a broader geographic purview, either regionally or internationally. And if the e-commerce platform showing signs of growth independently of your brick-and-mortar presence, so much the better. 

3) Your physical location itself, whether it’s in a mall or a street-level retail presence, with a favorable long-term lease, also adds to the business’s potential attractiveness and value. 

Perhaps as much of a contributing factor to salability and

value as any of the above is the aspect of your brand equity. As elusive as it may sound, in the case of most jewelry businesses, the store is the brand in itself. If you’ve been a valued jeweler and you’ve maintained your position in the market for a period of time, if there’s strong local awareness of you, then your store would be considered a retail brand in your local market. 

Brand value is not unique to chains that have a central marketing function and a powerful image machine at work.  A prominent jeweler on Main Street in a relatively small city or town, also enjoys this--you’re trusted in the local community, you’ve enjoyed longevity, you stock a great assortment and mix of brands, and you offer a high level of customer service--this all contributes to your unique brand equity, and if properly packaged and communicated to the potential buyer, becomes meaningful in the context of a sale.

When should I be thinking about selling in the first place?
For many jewelry store owners, very often a catalyst for evaluating the business is when the lease is coming to an end, but you really shouldn’t leave it until then. Sometimes an owner won’t want to renew a lease because it means a multi-year commitment. With retirement a few years away and the possibility that the business might not operate for much longer, most owners will be reluctant to lock themselves in that way. Or, alternatively, the landlord might seek a significant rent increase so that the economics of the store are no longer tenable. All of these factors taken separately or together can be a catalyst to wind down a business or look for a buyer.

Therefore, when there’s still a meaningful amount of time left on the lease, it’s very smart to take a proactive approach and get in front of a potential sale. That’s when the new owner can still benefit from your location, particularly if the location is desirable and the lease terms are favorable. This adds meaningful value to the business you’re selling, reducing uncertainty and assuring some continuity for a potential buyer, increasing the likelihood that you’ll get to a transaction. As a rule of thumb, try to think three to five years ahead of your lease ending. 

The importance of clear bookkeeping in presenting your business for sale
Having accurate and well-prepared financial reports enhances your ability to consummate a transaction. It makes the buyer comfortable to see, through well-kept books, how your business has performed.  A consistent set of financials that have been reviewed by an accountant is so important that it can make or break a deal. That’s another factor to get ahead of, well before you think you need to do so.

A jewelry business, just as any other business for sale, has to be merchandised properly.  Identifying and zeroing in on buyers whose culture will meld with yours and who are likely to pay most for your company and then packaging it to potential buyer according to each’s  specific needs and priorities will help to maximize value. If you hire an advisor to sell your business, they should be able to help you with much of this.

Beyond that, your advisor will help you maintain your objectivity throughout the negotiations-- minimize the emotion that goes along with any sale of a privately or family-held business, allow you to continue to run your business during what could be a time-consuming process and coordinate the other professionals, such as your attorney and accountant, while advocating for you at the negotiating table.     

Lastly, how do you know if it’s less a question of a sale and more of a wind down?

Again, an advisor should help with this assessment because you might be too close to take an objective view.  But, in general, if your operating costs are high, sales have been flat or declining, margins have been challenged or if you don’t have exclusive rights to any proprietary brand in your market your business will be far less attractive to any successor, whether from the outside or in your immediate circle. 

In this as in all cases, there are many choices. The key is to get an objective assessment, early enough in the game, so that your options remain as broad as possible. That way, you won’t be forced into the default of simply closing your doors.

Howard Feller is a partner at MMG Advisors, an investment banking, strategic and financial advisory firm servicing the retail, fashion, textile, jewelry and beauty sectors. He can be reached at H.Feller@mmgus.com.

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Screenshot of Taylor Swift's "Elizabeth Taylor" music video
CollectionsApr 03, 2026
Taylor Swift’s ‘Elizabeth Taylor’ Video Puts Jewelry Front and Center

Iconic pieces, like the Mike Todd Diamond Tiara, appear in the superstar’s new music video for her song inspired by the actress.

Neiman Marcus store in Fort Worth, Texas
MajorsApr 03, 2026
Saks Global Says It Will Emerge From Bankruptcy This Summer

The luxury retailer, which went Chapter 11 in January, announced Thursday that it has secured $500 million in exit financing.

NouvelleBox logo
Events & AwardsApr 03, 2026
JCK Luxury, NouvelleBox Partner on New Designer Ballroom

The NouvelleBox ballroom will feature independent jewelry designers, including Lene Vibe, Wyld Box Jewelry, and Kiaia Limited.

GIA iD100®
Brought to you by
Protect Your Customers and Your Business

You deserve to know what you are selling–to protect your customers as well as your business and your reputation.

Buddha Mama Moon Locket
CollectionsApr 03, 2026
Buddha Mama Brings Its ‘Moon’ Locket To Dallas

The one-of-a-kind locket, our Piece of the Week, opens to reveal three hidden images to keep close to your heart.

Weekly QuizApr 02, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Pandora distribution facility Canada
MajorsApr 02, 2026
Pandora Opens New Canadian Distribution Center Amid Tariff Concerns

The new facility was also designed to better serve its growing customer base in Canada.

Michelle Yeoh Mikimoto
TrendsApr 02, 2026
Michelle Yeoh Fronts New Mikimoto Campaign

The campaign is a tribute to the year 1893, when Kokichi Mikimoto created the world’s first cultured pearl.

TopImageCrop.jpg
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.

Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.

GIA President and CEO Pritesh Patel at GIA Taiwan campus
GradingApr 02, 2026
GIA Debuts New Campus in Taiwan

It is the only GIA school to offer the GIA Graduate Gemologist program in Chinese.

DCA Second Spark Workforce Initiative Graphic
MajorsApr 02, 2026
DCA Launches ‘Second Spark’ Workforce Initiative

The initiative connects veterans and parents returning to the workforce with careers in jewelry retail.

Michael Angelo
MajorsApr 02, 2026
Hoover & Strong Names New National Sales Representative

The wholesale manufacturer and precious metals refiner has appointed Michael Angelo as its new national sales representative.

Pandora and Foundrae medallion jewelry
MajorsApr 01, 2026
Foundrae Sues Pandora for Allegedly Copying Its Medallion Designs

Foundrae also accused the jewelry giant of copying its mood board style of marketing.

John Jacob Astor IV's Patek Philippe for Tiffany & Co., Battin & Co. pencil case
AuctionsApr 01, 2026
John Jacob Astor IV’s Titanic Pocket Watch Heads to Auction

A Patek Philippe for Tiffany & Co. timepiece owned by the American businessman who died on the Titanic will be offered at Freeman's Chicago.

Stock image of a Shell gas station
SurveysApr 01, 2026
Consumers’ Outlook Improves Again in March

The Conference Board’s Consumer Confidence Index edged up, with optimism about the present outweighing worries about the future.

Zach Bear and the Window Necklace Children’s Book from Zachary’s Jewelers
IndependentsApr 01, 2026
Zachary’s Jewelers’ Constance Polamalu to Release Children’s Book

The retailer’s Zach Bear gift comes to life in “Zach Bear and the Window Necklace,” which centers on curiosity, bravery, and helping.

Accredited Gemologists Association Logo
Events & AwardsApr 01, 2026
AGA Opens 2026 Gemological Scholarship, Research Grant Applications

Applications are open for the AGA Gemological Scholarship Program through May 15, and until June 2027 for the Gemological Research Grant.

National Jeweler columnist and Smart Age founder and CEO Emmanuel Raheb
ColumnistsMar 31, 2026
Q1 Clues That Reveal Where Your Jewelry Store’s Sales Are Heading

These customer behavior patterns say a lot about how successful your jewelry store is going to be this year, Emmanuel Raheb writes.

Mejuri Puzzle Collection Campaign Imagery
CollectionsMar 31, 2026
Mejuri Adds Silver to ‘Puzzle’ Collection

Mejuri’s popular collection of 18-karat yellow gold vermeil rings debuted in sterling silver alongside new “Puzzle” slider charms.

Ashley Longshore in Buddha Mama jewelry
CollectionsMar 31, 2026
Buddha Mama, Ashley Longshore to Host Pop-Up in Dallas

The Miami-based jewelry brand and the NYC-based artist will be in Dallas from April 9-11.

Natural Diamond Council world diamond day
SourcingMar 31, 2026
NDC Designates April 8 as 'World Diamond Day'

The initiative invites those in the industry to share stories on social media highlighting the meaning and impact of natural diamonds.

Jillian Wolk, the new CEO of Tracr
SourcingMar 31, 2026
GIA VP Jillian Wolk to Take Over at Tracr

Wolk’s first day on the job as CEO of Tracr, De Beers Group’s blockchain platform, will be May 1.

Tom Moses examining the “Motswedi” diamond
EditorsMar 30, 2026
Tom Moses Looks Back on His Decades at GIA

Moses, who will leave the lab in May after nearly 50 years, discusses his start in the business, gemstones that stand out, and what’s next.

Oscar Heyman Spring Catalog Aquamarine and Diamond Necklace and Platinum Opal, Sapphire, Emerald, Diamond Bracelet
TrendsMar 30, 2026
Oscar Heyman Debuts First Spring Catalog

The new catalog, which showcases 35 one-of-a-kind pieces of jewelry, is a compliment to the company’s popular holiday catalog.

Diavik Diamond Mine winter aerial shot
SourcingMar 30, 2026
Rio Tinto Hauls Last Load from Diavik

Production has ceased at the Canadian diamond mine, which has yielded more than 150 million carats of rough diamonds in its 23-year run.

Tanishq Westborough Massachusetts store
MajorsMar 30, 2026
Tanishq Opens First New England Location

The store opening marks the 10th United States location for the India-based jewelry retailer.

Saks Fifth Avenue door sign
MajorsMar 27, 2026
Saks Global Has Changed Its Mind About Closing These 3 Stores

Two Saks Fifth Avenue locations, one in Florida and one in California, and one Neiman Marcus store are off the chopping block.

Jimmy West celebrating 40 years with Leading Jewelers Guild
IndependentsMar 27, 2026
Jimmy West, Longtime LJG Executive Director, Dies at 72

West, who started in the art department at the Leading Jewelers Guild in 1979, is remembered for his patience, kindness, and dedication.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy