How Much Is My Salon/Spa Worth?

A question on the top of every business owner’s mind is, “how much is my business worth?”

With season upon us, I thought this would be a good time of year to update salon and spa owners on business transactions throughout Florida and give them some data regarding pricing and available opportunities. Here are some numbers to ponder:

• 29 = the number of salons and spa businesses sold to date in 2012 by Business Broker of Florida Association members.

• $89,000 = the average price of the sold salon/spa businesses.

• $60,000 = the average owner benefit generated in each sold salon/spa business.

• 1.37 = the owner benefit multiple (sales price divided by owner benefit) of the 29 sold salon/spa businesses .

• 1.26 = the historical owner benefit multiple of all salon/spa businesses ever sold in the state of Florida.

• 93% = the average percentage down of the 29 sold salon/spa businesses.

What does this mean?
Salon/spa businesses are in demand. And, in spite of a more conservative and cash strapped buying clientele, buyers are still paying at or above historical multiples with a percent down not realized in many other industries. If you have been contemplating selling your salon/spa business, now is a great time! Please contact me for a no obligation discussion.

Or, if you, or someone you know are interested in purchasing a salon or spa, below are our present listings:

Beauty - Hair Salon/Day Spa, Lee County, FL
Price $135,000; SDE $69,727; Revenue $489,939Very stylish & spacious with excellent exposure on major highway. Luxurious setting whether present for hair, chemical, mani, pedi, nails, facials, waxings, tan and other services, or waiting on spouse/friend. Turnkey business. Staff a balance of commission and annual renters.

Beauty - Skin and/or Massage, Lee County, FL
Price $100,000; SDE $72,272; Revenue $213,328Stylish & spacious specializing in skin, massage & related services, eg, body wraps, weight loss & detox. 3rd year in new location w/3000 SF of active space. All employees 1099 with 10 commission and 2 renters. Turnkey business with large customer list and strong relationships with area resorts.

Beauty - Tanning Salon, Lee County, FL
Price $375,000; SDE $166,433; Revenue $453,511Easy business that makes money. Growth potential. 3 highly visible & trafficked locations, top notch equipment, POS system & very clean stores. Each store has 10+ beds with level 1-4 equipment w/lay down & stand up beds. Large customer base with $165k currently in EFT. Seller financing.

Beauty - Tanning Salon, Manatee County, FL
Price $50,000; SDE $0; Revenue $0In Bradenton/Sarasota. 8 lay downs, 2 stand ups, Mystic Tan and airbrush equipment. Tanning software tracks everything. Opened short time but has eclipsed $20K in single month fees. Growing business with ability to increase revenues through retention, EFT or additional services. Less than asset value.

Beauty - Tanning Salon, Palm Beach, FL
Price $135,000; SDE $57,410; Revenue $106,017Located downtown Delray Beach next to dry cleaner, post office, nail salon, gym and high end salon/spa. Only tanning salon downtown. Hyatt hotel set to open 1 block away in Oct. Potential to do airbrush tanning for Hyatt spa. One of the only personalized airbrush tanning salons in Delray & Boca Raton.

 

 

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.