Salon For Sale in the Suburbs With 1,800+ Client Base

929

Revenue generating from booth renters and commissioned stylists this Salon is doing 80% women and 20% men services for a Revenue of $171,224 in 2014. The business has a 37% Profit Margin, allowing the Owner’s Profit to be $63,839 for 2014. Providing services such as haircuts, color, styling, waxing, natural nails, and spray tans – the business serves to a west suburb of Omaha where the average household income is $79,506/year.
The current Owner is scheduling the staff, overseeing daily salon needs, ordering, and is servicing a client base - the reason she is selling is due to family obligations however is willing to train and transition for 90 days post-close as well as stay on as a Stylist if the Buyer should desire.
This Salon has a large database of 1,813 clients, 481 of them within just the last 6 months! The staff, which includes, 2 commission-based stylists, 4 booth renting stylists, and 2 part-time receptionists provide service to their current client base however there is room for growth; there is space to hire two more stylists on commission which would nearly double income. As well as add an onsite nail technician to increase revenue as well!

Financial Overview
List Price: $158,000
Gross Sales
2014: $171,224
2013: $160,888
Client Mix: 80% women and 20% men
Services Offered: Hair, Waxing, Natural Nails, and Spray Tans
Owner Profit/Cash Flow
2014: $63,839
Profit Margin: 37%
Multiple: 2.5 *Multiples range from 1-5, with the average being 3
Valuation: 2014 Cash Flow x Multiple = Price
$63,839 x 2.5 = $159,598

Assets Included in Purchase: $61,089
Equipment: $58,089 = Build-Out for Reception, Tanning, Nails, Makeup, Stylists, Shampoo Station, and Breakroom
Inventory: $3,000
*amounts may vary
Business Information
Year Established: 2012
Location and Service Area: West Suburb of Omaha, Nebraska
Average Household Income: $79,506/year
Number of Clients: 1,813 in database [481 in the last 6 months]
Lease: $1,910/month for 1,834 sq./ft. with 8 modern feel & look, open stylist stations
Reason for Selling: Family Obligations
Employees: 2 commission-based stylists, 4 booth renting stylists, 2 part-time receptionists
Hours: Open Monday - Saturday
Seller Training Period: 90 days, would be willing to stay on as a Stylist post-closing
Growth Opportunities: Space to hire two more stylists on commission which would nearly double income. Add an onsite nail technician
Current Owner’s Responsibilities: Schedules staff, oversees daily salon needs, orders, and services a client base

Funding Example
Purchase Price: $158,000
15% Buyer Down Payment: $23,700
15% Seller Financing: $23,700
70% Bank Loan: $110,600
An SBA Express Loan could be an option due to the loan amount needed being under $250K!

Facilities:

Lease: $1,910/month for 1,834 sq./ft. with 8 modern feel & look, open stylist stations

Growth Potential:

Space to hire two more stylists on commission which would nearly double income. Add an onsite nail technician

Training/Support:

90 days, would be willing to stay on as a Stylist post-closing

Seller Financing:

15% Seller Financing: $17,400

Sale Reason:

Family Obligations