Hair salons and barbershops for sale

In a salon, clients follow the person who cuts their hair. Get a clear picture of how much revenue each stylist generates and whether they are employed or rent a chair. Employees transfer with the business on their existing terms. Chair renters are self-employed with their own clients and can move whenever they like. Talk to the key stylists before you bid, and ask what the owner plans to do after the sale.

Read the chair rental agreements carefully: what does the renter pay, how long is the notice period, and is there a client clause? Agreements that work like employment in practice can leave it unclear who the clients belong to.

Hair salons are valued like the rest of the category: Sitavo’s indicative range is 1.5–3.5 times annual profit, cross-checked against 0.3–1 times revenue. Look at revenue per chair, the return rate and retail sales. Salons where the owner looks after a large share of clients usually sit at the low end, unless the owner stays on for a period.

Location and lease matter a great deal for a salon. Check the remaining term, the rent and whether the landlord must approve you as the new tenant. The booking system should be handed over with client history, and clients must still be able to find the salon online under the same name. Retail stock is often settled separately.

• Revenue per stylist over the last 12 months.
• Employment contracts and chair rental agreements.
• Booking system reports showing repeat visits and cancellations.
• The lease and the landlord’s conditions for a change of tenant.
• Condition and ownership of chairs, basins and fittings.

Read the general advice on buying salons and clinics, and use the price estimate to compare the asking price with the salon’s figures.