A Step-by-Step Guide to Selling a Spa Business

With improved consumer confidence and growing per capita disposable income, the $17 billion spa industry is seeing continual growth. In fact, from 2012 to 2017, the health and wellness spa industry grew by 3 percent. If you’re interested in selling a spa business, now could be the right time to do it!

Five Steps to Selling a Spa Business

Learn to properly prepare your spa business for sale by following Sunbelt Business Brokers’ step-by-step guide below.

1. Develop an exit strategy.

how to sell a spa businessWhether you’re ready to sell tomorrow, next year, or ten years from now, it is critical that you have an exit strategy in place. An exit strategy is a plan that details how you– the spa owner– will exit the business.

Questions to ask yourself when developing your exit strategy include:

  • Who do I plan to sell my spa to? An employee? A family member? A competitor?
  • Does my retirement depend on the sale of this spa?
  • When do I want to sell my spa business?
  • Will I stay on as an advisor or employee for a designated period of time after the sale?
  • Will my employees and managers continue working for the spa under new ownership?

Once you’ve answered the above questions, you’re generally ready to move onto step two.

2. Organize contracts, financials, and paperwork.

Now that you have an exit strategy in place, it’s time to gather your paperwork. Work with a trusted attorney or accountant to organize:

  • Contracts;
  • Financial documents;
  • Lease agreements;
  • Tax documents; and
  • Licensing documents.

If you collect any other documents that an interested buyer may want to review during the due diligence process.

3. Prepare the spa for sale.

Prior to listing your spa business for sale, you’ll want to do everything in your power to maximize its value. To do so, commit to fine-tuning your marketing, daily operations, pricing, employees, and services. Where you detect weaknesses in the spa’s business plan, address them.

Another way to maximize your day spa’s value is to pursue opportunities. The larger a spa’s book of business, the more attractive it will be to parties interested in buying a beauty or spa business; so consider how you might expand clientele base. Ways to broaden your spa clientele and increase cash flow prior to selling might include:

  • Offering popular, new medical spa services like injectables, facials, skin care, and waxing;
  • Creating new and exciting spa packages;
  • Develop a membership plan or a loyalty program;
  • Explore new marketing techniques to reach your target audience; and
  • Establishing an employee incentive program.

4. Value your spa business.

Oftentimes, a small business owner’s perception of what his or her business is worth can be clouded by emotional attachment. For help valuing your spa and selecting a fair asking price, it is best to hire a third-party professional valuation service. With a formal valuation detailing what your spa is worth, you will be better able to defend your selling price to potential buyers.

5. List your spa for sale.

Last but certainly not least, you’ll need to list your spa for sale. While you have the option to sell the spa yourself, it is typically best to enlist the help of a business brokerage service. A business broker will handle a majority of the grunt work so that you can focus on what’s most important– the day to day operations of your spa business.

For help listing your spa business for sale, contact your nearest Sunbelt Business Brokers office. Our professional brokers have years of experience matching spa owners with interested buyers and can help close your ideal deal quickly.

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