A salon is bought for its lease, its clients and its stylists, and the third of those is the one that can walk out. Buyers know that a salon whose stylists leave takes the client book with them, so retention evidence is worth more than any other preparation.
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Stylists and how they are engaged
Employed, commission based or chair renters, each with different implications for the buyer. Length of service, whether anyone is under a restrictive covenant, and how the client relationships are recorded all matter. A salon with a booking system that records clients to the business rather than to individual stylists is worth measurably more.
The lease and the fit out
Remaining term, rent against market, assignment provisions and whether the fit out will need replacing soon. In a high street location the lease is often the largest single asset in the sale, and a short remaining term is a discount rather than a discussion. Start the landlord conversation before you market.
The numbers a buyer wants
Revenue split between services and retail, average ticket, client retention and rebooking rates, chair utilization, and the share of revenue produced by the owner personally. Retail sales are higher margin and are frequently under reported by owners who treat them as incidental.
Other questions people ask
Will my stylists stay?
That is the buyer's central question. Evidence of long service, employment terms and any covenants all help, and buyers frequently ask for key stylists to be spoken to before closing.
How is a salon valued?
On a multiple of seller's discretionary earnings, moved sharply by the lease, the stylist team and how much of the revenue the owner produces personally.
Should I tell my team?
Usually late and carefully, though key stylists the buyer wants to retain are often told earlier under their own arrangements.