How to Sell a Beauty Salon for the Best Price



beauty salon iconThe beauty salon industry—encompassing everything from haircutting, coloring and styling to nail and skin care, merchandising and other spa services—is huge. And because these services are considered a commodity, the industry is positioned for growth. In fact, according to ISBISWorld, revenue growth is expected to rise at annual rate of 3.2% each year, reaching $58.7 billion by 2019, which is great news if you are looking to sell a beauty salon.

How to Sell a Beauty Salon

Whether nearing retirement, relocating or venturing on to other business opportunities, if you’re looking to sell your beauty salon for the best price, start with the following steps to streamline the process.

1. Organize Your Assets

The first step in selling your salon business is to list all of your salons’ assets—both concrete and intangible. Hard assets would include any operational equipment, like chairs and product inventory, and intangible assets would be things like your clients, key staff members, good community standing and logos/trademarks. These assets will play a big role in your company’s valuation.

2. Find Your Valuation

Determine your beauty salon’s market value by using the different appraisal methods available, such as the revenue-based assessment, the “cost approach,” or the assets and earnings estimation. You can also use valuation calculators and other software to help you find your company’s valuation. Once you come up with an accurate valuation, you can set your price.

3. Assess Potential Buyers

It takes an experienced and motivated individual to run a beauty salon. It might be necessary to enlist a business broker, consultant or appraiser for help attracting potential buyers and weeding out lowball offers. Industry experts—like Sunbelt Business Brokers of Raleigh—will have a good grasp on your target market, as well as extensive databases to help you find the right buyer and sell your beauty salon for the best price.

With more than 30 years of experience, the Sunbelt Network provides business brokerage services for every buying and selling need. Contact us today!


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