Sometimes an owner of the salon business catches himself thinking that he would like to sell his business. The intuition of the entrepreneur tells him that everything is no longer the same as it was before: business doesn’t bring joy, distracts from family and friends and doesn’t bring as much money as it used to. Then it’s time to sell the salon and move on to some new projects.
First of all, the salon owner should prepare his beauty salon for sale.
If you haven’t yet acquired professionally prepared certificates, start with this. If possible, take care of the auditor's report. The buyer, studying the offer before buying, will definitely want to make sure that he’s offered not a pig in a poke. Show him all contracts that have sales value. We also recommend to conduct an independent business valuation (not to be confused with real estate valuation) using several methods.
There are many business valuation methods. The main factors determining the estimated value are the following:
- Demand for this business,
- Present and future profit of the business being valued, the presence of cash flow or the possibility of its increase,
- Cost of creating a similar business,
- Risk of receiving/not receiving income,
- Degree of control over the business and the degree of liquidity of assets.
The seller of the business should calculate the cost using several methods and keep these arguments at the ready during negotiations. At the same time, he should understand that only a correct definition of the type of a perfect buyer, a systematic search for him, as well as correctly conducted negotiations, can give the highest sale price.