I have a small salon which is doing well, I have one ft therapist alongside me and one pt, I’m considering relocating and am looking to sell the established business, I’m wondering how to do that? Thanks in advance x
How to value a small beauty salon?
- Thread starter jeniwalsh
- Start date
Help Support SalonGeek:
BannerPenguin
Well-Known Member
Normally it's so many times your net profit.
Thanks, how do I find out how many times? X
RED STAR
Well-Known Member
Are you going far with your 'relocation'?
If local, will you be taking your staff with you....if so, I would I expect your client base to follow ......
Hence the problem.....how can you put a value to what is not there?
If local, will you be taking your staff with you....if so, I would I expect your client base to follow ......
Hence the problem.....how can you put a value to what is not there?
I’m leaving the area altogether 3 hours away and the staff I have are the ones I want to buy the salon, so nothing should change apart from my long term clients will be unhappy
salonfrog
Accountant for salon owners
There are a number of ways to value your business (multiplier method - as BannerPenguin says) , Net present value (accountants like this), good old market rate, or just blag it and see what happens.
If there’s good money involved, you could get a professional in to do this valuation.
What you do need to do though is show potential buyers just what a good investment your salon is. Putting together a 3 or 5 year detailed plan (presented beautifully) of all the income and expenses, pointing out areas of potential expansion or new business opportunities (eg new services which could be offered or space to take on additional staff) etc. so a buyer can see just what the potential of your salon is!
The Plan should also include key metrics, such as annual return on investment, how much an owner is likely to earn after tax etc etc.
In other words, spoon feed potential buyers with what a great place you have to maximise your sales price. Think what estate agents do to sell property. They sell a lifestyle.
If there’s good money involved, you could get a professional in to do this valuation.
What you do need to do though is show potential buyers just what a good investment your salon is. Putting together a 3 or 5 year detailed plan (presented beautifully) of all the income and expenses, pointing out areas of potential expansion or new business opportunities (eg new services which could be offered or space to take on additional staff) etc. so a buyer can see just what the potential of your salon is!
The Plan should also include key metrics, such as annual return on investment, how much an owner is likely to earn after tax etc etc.
In other words, spoon feed potential buyers with what a great place you have to maximise your sales price. Think what estate agents do to sell property. They sell a lifestyle.
littlebear
Well-Known Member
It's generally your net profit X 5 or X 10 but you also need about 3 years of accounts to display this value
