Business Overview

Private Practice Transitions is assisting in the sale of a highly regarded and profitable beauty school in the Northwest. Established in 1976, this beauty school has an outstanding reputation, is highly profitable, and has proven YoY growth. With strong weighted projected Seller’s Discretionary Earnings (SDE) of over $1,000,000, you don’t want to miss this great opportunity! If you are interested in a turn-key business with incredible growth potential, call us at 253.509.9224 or send an email to info@privatepracticetransitions.com, include “1141 Highly Profitable Beauty School” in the subject line.

Financial

  • Asking Price: $5,500,000
  • Cash Flow: N/A
  • Gross Revenue: $8,207,055
  • EBITDA: $1,035,014
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1976

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:62
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Owner is willing to provide transition assistance and help with goodwill transfer, business development, and other "mentoring" functions for an agreed upon period of time up to one (1) year.

Additional Info

The business was founded in 1976, making the business 46 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell operating businesses. Nevertheless, the genuine reason and the one they say to you may be 2 totally different things. As an example, they might claim "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competition, current reduction in profits, or an array of various other reasons. This is why it is extremely important that you not depend completely on a seller's word, but instead, utilize the vendor's response in conjunction with your overall due diligence. This will paint an extra realistic picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Numerous businesses borrow money with the purpose of covering items like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that earnings margins are too tight. Lots of businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be fulfilled or may lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area draw in new customers? Most times, companies have repeat customers, which develop the core of their daily revenues. Particular factors such as brand-new competition sprouting up around the area, road building, and also personnel turn over can influence repeat clients as well as adversely affect future earnings. One important thing to consider is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business regularly, the greater the chance to construct a returning consumer base. A last thought is the basic location demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional typical house income effect future income prospects?