Business Overview

*The cash flow number shown ($162,422) was to “normalize” the business and was calculated by doing a 4-year weighted average on the NOB. 2020 was given a low weighting due to the outlying COVID event. Revenues for the business have been steadily increasing in 2021 as the business rebounds from the pandemic. Please see the attached circular for 2021 YTD numbers.

**The Business received PPP Loans in 2020 and 2021 which were forgiven in 2021. These dollars are not reflected in the 2020 and 2021 Revenues or N.O.B. numbers shown.

This award-winning hair salon and day spa for sale in the Des Moines metro area offers a full array of services to its high-end clientele. The business is staffed with career-driven stylists who are highly trained and focused on their craft which has resulted in excellent client reviews and a busy salon. With its high-end furnishings and equipment, its impeccable reputation, and consistent profits, this business is truly turn-key for the next owner.

Financial

  • Asking Price: $585,000
  • Cash Flow: $162,422
  • Gross Revenue: $1,359,759
  • EBITDA: N/A
  • FF&E: $263,168
  • Inventory: $120,215
  • Inventory Included: N/A
  • Established: 2000

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:5,600
  • Lot Size:N/A
  • Total Number of Employees:25
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This salon and spa is located in a 5,600 square foot facility in the Des Moines metro area. The location has great signage, plenty of parking and excellent visibility to traffic.

Is Support & Training Included:

Negotiable.

Purpose For Selling:

Retirement.

Pros and Cons:

The staff is highly skilled and work independently without much oversight.

Opportunities and Growth:

This business can continue to increase its revenues by adding more staff, expanding the services offered, extending its hours of operation, and by more aggressively marketing its hair and nail retail products.

Additional Info

The company was founded in 2000, making the business 22 years old.
The deal shall not include inventory valued at $120,215*, which ins't included in the suggested price.

The business has 25 employees and is situated in a building with disclosed square footage of 5,600 sq ft.
The real estate is leased by the business for $15,995 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell operating businesses. Nonetheless, the real reason vs the one they say to you might be 2 totally different things. For instance, they may say "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be excuses to try to hide the reality of transforming demographics, increased competitors, recent decrease in incomes, or an array of various other reasons. This is why it is very crucial that you not depend absolutely on a vendor's word, yet instead, make use of the vendor's response in conjunction with your general due diligence. This will paint an extra practical picture of the business's current scenario.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Many businesses take out loans so as to cover items like stock, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that earnings margins are too small. Many companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location attract brand-new consumers? Most times, businesses have repeat consumers, which develop the core of their everyday earnings. Specific elements such as new competitors growing up around the area, roadway building and construction, as well as personnel turn over can impact repeat customers and negatively impact future revenues. One crucial thing to think about is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business regularly, the higher the chance to build a returning client base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it situated on the edge of town? How might the neighborhood average household income influence future revenue prospects?