Buying a salon

[EmmaCampbell]

Hi I'm looking to buy the salon I work in at the moment I will be buying the lease which I think is due to be renewed the salon has been there for 13 years and has the owners name above the door so it's branded to her her accountant has extimated it to cost upto £100.000 that seems a lot it's all new to me this buying stuff so just wanted some advise from others who have been through this thanks in advanced

 

[PamieD]

Are you buying the lease or the freehold? The lease is renewed with the landlord, so it's nothing to do with the owner. You only pay for what's left on the lease she has signed or you sign a new one with the landlord when you by the salon. That figure must be for the business itself. Is it making much per year?

 

[EmmaCampbell]

Not sure as we have only just said about it so I need to ask more details ok erm he has based it on around £40.000 per annum I will know defo figs as can ask one other girl I work with as she dose all the cashing up vat figs etc thank you for your help

 

[PamieD]

Make sure you have an accountant to look at the figures too, and a solicitor to go over the sale contract. You don't want to get saddled with any of their debt if they have any! A business is only worth what someone is prepared to pay for it at the end of the day.

 

[AcidPerm]

Agree with PamieD.

Find yourself a good business lawyer and an Accountant to go through the contract and the books and ask them to explain everything to you in detail. Don't rely on the information that the seller provides but get everything double checked independently.

Why is the owner selling the business? Have you looked at any other salons or shops to see what else is available?

 

[EmmaCampbell]

Thanks guys for your help I am going to get my own valuation on the shop and will ask to see the books so I can give them to my accountant she is selling due to just having a baby and she lives a good hour away from the salon now

 

[AcidPerm]

Good luck! It sounds like an exciting opportunity.

 

[EmmaCampbell]

Would anyone know where I would look for someone to value a hair salon ?

 

[Beckybee]

Your accountant should be able to give yout a hat information once they see the at least 3 years books

If not then get another accountant

 

[EmmaCampbell]

Thank you I have passed it on to her