Selling a Beauty Salon
Updated: Feb 1, 2020
This case study describes the journey of Selling a Beauty Salon through ETS Corporate Business Brokers
This sale concerns our client Kim Fox, who owned a very successful beauty salon in Wokingham. It is very profitable and achieved an excellent sale market value. It had to be sold with the utmost CONFIDENTIALITY, as Kim was concerned that knowledge of the business being on the market would disrupt a very strong and loyal team of therapists, and cause concern within her client base.
We are aligned with the NHF and are able to offer a very specialised service in the sale of Hair and Beauty Salons.
We were able to find a Buyer that paid a substantial amount for a very profitable business, without compromising confidentiality and allowing Kim to semi retire and pursue other business interests. She was pleased that after nearly 20 years of carefully nurturing and growing her business, she was able to sell her Salon for a good value, maintain the team and the business, and hand it on to a competent businesswoman to grow.
About the Business
The business is a very successful Beauty Salon situated in Wokingham called the Secret Garden. It provides an array of services and was established in 1999 by Kim. The turnover is well over £165,000 with a profit in excess of £70,000. It has an excellent client base and was fully staffed, which would either have suited an Owner/ Operator or an Investor. It is operated from a leasehold premise.
Kim wanted ETS Corporate to find a Buyer for her business that was prepared to pay a substantial market value, and protect the business and staff. The last thing she wanted was the sale to become public as she felt it would have detrimentally affected her business.
Kim had operated the business for nearly 20 years and wanted to semi-retire to pursue other business and personal interests. She wanted to leave the business in capable hands for growth and to look after her loyal staff and client base.
ETS Corporate first of all made sure that all advertising was confidential and ensured the business was protected and customers and staff did not find out until the owner was ready.
All advertising was proofed by Kim to ensure she was comfortable with the contents being published. In total, 485 views were achieved from the website www.businessesforsale.com with 14 enquiries, and from www.daltonsbusiness.com, 49 views and 9 enquiries. All potential Buyers were carefully vetted financially and for suitability and Non Disclosure Agreement signed before any information was disclosed. Also local and national competitors were discretely approached without giving away the identity of the Business.
A private Buyer, Emma Perrett, who has a strong background with a world leading cosmetics company came forward and ETS Corporate helped facilitate the process including agreeing heads of terms and engaging a solicitor for Kim.
Emma was a first time Buyer, so required both knowledge of the business, and buying businesses generally. At ETS, we believe that although we represent the Seller, a business cannot be sold without creating a win-win situation for both parties.
ETS Corporate also liaised with the landlord’s agents and solicitors on all sides and when there were issues they helped guide the process through to sale.
ETS Corporate was able to find a suitable Buyer for the Beauty salon at a price that Kim was happy with, and she was able to break the news to her staff after exchange of contracts. She was pleased that the business was sold to someone who was looking to invest and grow it and a sale had been achieved without news of it leaking until she was ready.
Watch the post-sales interview with the Owner Kim and the Buyer Emma.
Would you like to discuss the sale of your business?
Book your free consultation with the author of this post Zach Dogar.