Listing ID: 81061
This is a owner absentee operated hair salon. Two locations. There is a general manager who handled day to day operations between both salons and a manager who handles operations within each location. Owner handles administrative task from home and is ready to retire. Support and Training will be outstanding ensuring a smooth transition. The seller states that the experienced and dedicated staff will all be willing to stay on with the new owner of this business. For more information including a detailed confidential opportunity summary with financial information and photos, please use the form on this page to request more information and the NDA will be emailed to you right away. For a quick response to your inquiry, please email listing agent Trent Lee (RE# S.0183611.LLC; Business Broker Permit# BUSB.0006978) at firstname.lastname@example.org.
- Asking Price: $200,492
- Cash Flow: $89,507
- Gross Revenue: $790,438
- EBITDA: N/A
- FF&E: N/A
- Inventory: $4,000
- Inventory Included: Yes
- Established: 2008
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:2,800
- Lot Size:N/A
- Total Number of Employees:14
- Furniture, Fixtures and Equipment:N/A
Location 1 is a leased location of 1,400 square feet with a Total Monthly Rent of $3,906.83. Lease ends 12/2022 with One 5 year option. Location 2 is a leased location of 1,400 square feet with a Total Monthly Rent of $4,096.75. Lease ends 04/2023 with One 5 year option. Hours of operation for both are 9am-7pm Monday – Friday and 9am-6pm Saturday. 14 FT employees total. $4,000 in Inventory included in asking price. Salon and Cosmetology License required.
This Business Is An Established Franchise
The business was established in 2008, making the business 14 years old.
The transaction will include inventory valued at $4,000, which is included in the asking price.
The business has 14 FTE employees and is situated in a building with disclosed square footage of 2,800 sq ft.
The real estate is leased by the company for $8,004 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell companies. However, the genuine factor vs the one they tell you may be 2 absolutely different things. As an example, they may say "I have too many various responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be excuses to try to hide the reality of changing demographics, increased competitors, recent reduction in incomes, or a variety of various other reasons. This is why it is very vital that you not rely totally on a seller's word, yet instead, make use of the vendor's response together with your overall due diligence. This will repaint a more realistic image of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses borrow money so as to cover things like inventory, payroll, accounts payable, etc. Remember that sometimes this can imply that revenue margins are too small. Lots of organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that should be fulfilled or may cause charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract new clients? Often times, companies have repeat consumers, which develop the core of their daily revenues. Specific variables such as new competition growing up around the location, road building, and staff turn over can impact repeat customers and negatively influence future revenues. One crucial point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business often, the higher the possibility to construct a returning customer base. A last thought is the general location demographics. Is the business situated in a largely populated city, or is it located on the edge of town? Just how might the local median family income effect future earnings potential?