Listing ID: 66904
An elegant, first class salon with an established clientele in an affluent PDX suburb. Exquisite interior, modern decor, spacious with a warm, friendly atmosphere. Long term employees, beautiful interior upgrades, a solid lease in place and adequate parking make this business an incredible buying opportunity. Over 20 years in business in this location with the same owner. The owner currently works part-time and would be willing to stay on after the sale as an employee to ensure a smooth transition. Non-Disclosure required for information on this business opportunity.
- Asking Price: $175,000
- Cash Flow: $38,344
- Gross Revenue: $141,589
- EBITDA: N/A
- FF&E: $39,394
- Inventory: $8,000
- Inventory Included: Yes
- Established: 1997
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,073
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
Beautiful modern faciilities with over $150,000 spent on tenant improvements.
Retirement, but would stay on as an employee with limited hours.
Competitive industry with recurring customers that are loyal to stylists. This business is established and has long term employees that have relationships in place.
Expand online presence, increase advertising, add established stylists and expand product and service offerings.
The venture was started in 1997, making the business 25 years old.
The transaction will include inventory valued at $8,000, which is included in the requested price.
The company has 12 employees and is situated in a building with estimated square footage of 2,073 sq ft.
The real estate is leased by the business for $5,145 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. However, the genuine reason vs the one they tell you may be 2 entirely different things. As an example, they may claim "I have too many various obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may just be excuses to try to conceal the reality of changing demographics, increased competitors, current decrease in profits, or an array of other factors. This is why it is really essential that you not count absolutely on a seller's word, yet instead, utilize the vendor's answer along with your general due diligence. This will paint a much more realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many businesses take out loans with the purpose of covering points such as stock, payroll, accounts payable, and so on. Keep in mind that in some cases this can imply that revenue margins are too tight. Lots of businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that need to be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract brand-new consumers? Often times, businesses have repeat customers, which develop the core of their everyday revenues. Particular factors such as brand-new competitors sprouting up around the area, road construction, and also staff turnover can affect repeat consumers and negatively impact future earnings. One crucial thing to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business regularly, the greater the opportunity to develop a returning client base. A final idea is the basic location demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? How might the local average home income effect future earnings prospects?