Listing ID: 71530
-Premier, full-service hair salon & spa in a desirable suburban location.
-Provides more than 14,000 services per year with a database of over 2,000 repeat
-Leader in employee benefits, creating great employee loyalty.
-Elegant décor provides clients with a relaxing & lavish atmosphere.
-3,500 sq. ft. leased space with plenty of parking.
-Tremendous opportunity to grow the spa side of the business.
-Owner wishes to retire after 25 years (currently working 4 days/week)
Owners took great care staying in contact with clients during closure; resulting in
re- opening revenue being just about back to normal.
- Asking Price: $495,000
- Cash Flow: $229,468
- Gross Revenue: $1,200,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $30,000
- Inventory Included: N/A
- Established: 2003
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:27
- Furniture, Fixtures and Equipment:N/A
3,500 sq. ft. leased location with plenty of parking.
Seller supports transitional training to aid in a smooth transition.
The company was established in 2003, making the business 19 years old.
The transaction won't include inventory valued at $30,000*, which ins't included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell businesses. Nevertheless, the genuine factor vs the one they say to you might be 2 totally different things. For instance, they might say "I have a lot of various responsibilities" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may simply be excuses to try to conceal the reality of changing demographics, increased competitors, current decrease in earnings, or a range of various other factors. This is why it is really important that you not depend totally on a vendor's word, yet instead, utilize the seller's response together with your overall due diligence. This will repaint a more realistic picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of operating businesses take out loans with the purpose of covering things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can mean that profit margins are too thin. Many businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that should be fulfilled or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract brand-new consumers? Many times, companies have repeat clients, which create the core of their everyday earnings. Certain elements such as brand-new competition growing up around the area, roadway building, as well as employee turn over can affect repeat customers as well as adversely affect future revenues. One important thing to consider is the location of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business on a regular basis, the greater the chance to construct a returning consumer base. A last idea is the general area demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? How might the regional median family earnings influence future income potential?