Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF #76931-965006

Open in the same location for 22 years, this gorgeous and profitable skincare spa is the epitome of luxury and relaxation. Serving Kingwood and the surrounding areas, this business takes care of its clients like family and offers the best quality facials, massages, makeup and medical-grade skincare with an emphasis on treating and maintaining problematic skin. For three years in a row, the spa has earned the “Best of Kingwood” title. In 2019, annual revenues topped $311,000 with an SDE over $67,000. Considering the atmosphere in 2020, the business still did well, posting over $225,000 in sales. The business bounced back beautifully in 2021 and year-end revenues will be very close to 2019 numbers. What even better though is that the seller restructured her commission pay down by 15%, so the annualized 2021 SDE is over $91,000. Considering the fourth quarter is the most profitable in the beauty industry, it’s likely that 2021 sales and SDE will be even higher by year’s end.

The entire team at the spa is committed to teaching clients how to care for their skin at home to achieve optimum results. The spa sells only the best, high-quality product lines, including Skin Medica, PCA and the spa’s own private line. Estheticians offer many different services such as Bio-Ultimate Age-Defying Facial, Hydroboration, LED Facial, Oxygen Facial and PCA Power Peel. Additional highly requested services include massages and waxing. With room to grow by 2-3 part-time or 1-2 full-time estheticians and/or massage therapists, sales and profitability in 2022 should be higher than ever for the lucky buyer.
The history of this business speaks for itself since the owner and the spa have been a part of the Kingwood community for 22 years. As all businesses that have been open for over 20 years, this one has evolved and changed over the years. The spa recently went through a remodel that makes the waiting room and reception a welcoming and relaxing space…there’s even a fireplace! What hasn’t changed is the commitment to quality services and client-focused excellence.
The most important part of the recent history is the change in commission percentages for contract estheticians and massage therapists. The contract employees are still making a high hourly rate plus their tips, and the business is much more profitable under this structure.
There is ample room for growth in this business with things as simple as minor price increases and adding services. Adding more med-spa services like laser hair removal or similar could significantly add to the annual revenue. The spa could also add aesthetic services like injectables and fillers. Modern women of all ages are spending money and time to work on stopping time with things like Botox, Dysport and a variety of facial fillers. The rooms are spacious enough to add any necessary equipment that a new owner might want to purchase.

Financial

  • Asking Price: $159,900
  • Cash Flow: $91,000
  • Gross Revenue: $298,000
  • EBITDA: N/A
  • FF&E: $35,000
  • Inventory: $10,000
  • Inventory Included: Yes
  • Established: 1999

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,300
  • Lot Size:N/A
  • Total Number of Employees:3
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

retiring

Additional Info

The business was started in 1999, making the business 23 years old.
The transaction does include inventory valued at $10,000, which is included in the requested price.

The company has 3 employees and is situated in a building with estimated square footage of 1,300 sq ft.
The building is leased by the business for $3,300 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell companies. Nonetheless, the genuine reason and the one they tell you may be 2 entirely different things. For instance, they might state "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these might simply be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in earnings, or a range of various other reasons. This is why it is very important that you not depend completely on a seller's word, however rather, make use of the vendor's solution in conjunction with your overall due diligence. This will paint a more reasonable picture of the business's existing scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses take out loans so as to cover items such as inventory, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can suggest that profit margins are too tight. Numerous companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that need to be satisfied or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location attract brand-new consumers? Many times, businesses have repeat clients, which develop the core of their everyday earnings. Particular elements such as new competitors sprouting up around the location, road building, as well as employee turn over can affect repeat clients as well as adversely impact future earnings. One crucial thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business often, the higher the opportunity to construct a returning customer base. A final idea is the general location demographics. Is the business situated in a densely populated city, or is it located on the outskirts of town? Exactly how might the neighborhood average home earnings impact future income prospects?