Listing ID: 83632
This long-standing hair and beauty salon comes with the real estate on the lower level of an upscale condominium complex. The owner is retiring and wants to sell the business and property, which can be repurposed for other businesses.
The hair salon is fully equipped and includes 6 styling stations, a massage room, and a pedicure station. This opportunity comes with some nice extras…full privileges to the building’s swimming pool, gym, and tennis courts. Some seller financing is available for the right buyer.
- Asking Price: $399,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: $2,000
- Inventory Included: N/A
- Established: 1999
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:1,090
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The company was established in 1999, making the business 23 years old.
The transaction shall not include inventory valued at $2,000*, which ins't included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell operating businesses. Nevertheless, the real factor vs the one they tell you might be 2 completely different things. As an example, they may claim "I have too many various commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competition, current decrease in profits, or a variety of other reasons. This is why it is extremely crucial that you not rely completely on a seller's word, yet rather, utilize the seller's answer along with your general due diligence. This will paint a more sensible image of the business's present 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 deal. Numerous businesses take out loans with the purpose of covering items like stock, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can indicate that profit margins are too tight. Many businesses fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future obligations to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that need to be satisfied or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area attract new consumers? Most times, businesses have repeat customers, which develop the core of their daily revenues. Particular variables such as new competitors sprouting up around the location, roadway construction, as well as personnel turnover can impact repeat consumers as well as adversely influence future revenues. One essential point to take into consideration is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the greater the possibility to develop a returning client base. A final thought is the general location demographics. Is the business located in a densely populated city, or is it located on the edge of town? How might the neighborhood typical family income influence future revenue potential?