This up-scale hair salon has 18+ stylists is in a newly remodeled 5,000 sq. ft. facility in just about the best location one could imagine. And, the owners just signed a new long-term lease. There is plenty of nearby customer parking and great street visibility on a major street with over 20,000 cars per day traffic count. There is room for expansion and plenty of retail space to sell related products. The décor and equipment was all updated in 2023 and 2024.
This salon was originally started in the 1980’s and was acquired by the current owner in 2004. It is a highly reputable and upscale salon serving nearby high-income neighborhoods. It is currently operating under a booth rental structure and catering to a loyal and affluent clientele. With over 18 stylists and additional esthetic and nail professionals, it offers a full range of personal care services including hair, skin care, and nails.
The salon’s current owner creates a welcoming environment that fosters collaboration and even a shared clientele among its team of seasoned professionals. The business leases its meticulously designed and decorated facility. It enjoys steady revenues with minimal turnover. The owner is now ready to pass the baton to a new owner and will continue working post-sale to ensure a smooth transition.
The current owner understands that the shop may need to change its booth rental structure to commissioned stylists in order to improve shop profitability as future turnover occurs. The business is also well-positioned for continued success or expansion under a new owner, by expanding its retail sales, possibly with online product offerings, re-configuring some salon spaces for more intense use, as well as expanding its services, such as offering Medspa services.
At the proposed pricing structure, a buyer will need $185,000 cash at closing: $75,000 for the proposed down payment, as much as $35,000 (+/-) for the purchase of current inventory at the closing, and an estimated reserve of about $75,000 in working capital. The buyer will then be assuming a seller note of $322,500 at 7% annual interest, with a 10-year term, but with a 3-year balloon payment due so that the buyer may refinance the business at that time.
The ideal buyer is an experienced hair professional with a great credit history and the ability to sign a personal guaranty on the seller note, giving the seller enough comfort to agree to those terms.
Contact us, register, sign our NDA and receive our confidential Offering Summary on this opportunity!
Ad#:2408150
