thinking of selling up

[nicjill]

Hey geeks, not posted properly for quite a while, I've been lurking in the background quite a lot.

anyway, for various reasons, I am thinking of selling my salon but have never sold a business before. Does anyone know how I would go about looking into it? Things like, how do I work out the value of my business? I have a good client base for nails, sunbeds & spray tanning with space to add a beauty room (plus the self-employed therapist who could take that on) and it comes with a flat which is currently rented out so its a good little business.

I already have someone who may be interested and would run it pretty much as I have, keeping on staff and honouring client courses, etc. This sounds perfect but I know her and I think she will try to get it ridiculously cheap! Does mean that I'd avoid agents fees but do I sell quickly & cheaply knowing that my clients and staff are looked after, or do I hold out for more money which might take a lot longer and they might come in, get rid of the staff and not honour courses which will upset clients? The woman who is interested does not have any beauty/nail experience so will be looking to make it self-running as cheaply as possible. I use Creative and don't think my nail clients would stay if she changed to something cheaper. It would be better suited to somebody who would be willing to run it themselves with minimal staff, this is how I've run it for the past 5 years. I'm not sure what to do, I know its a business and I should only look at what I can get for it but I still feel a responsibility to my staff & clients to do what's best for them. :irked:

What do you geeks think?

 

[sj1973]

what a shame your getting rid of it hun....i think when you sell to friends it can get ugly....

you could fall out over price...then little things....stock...clients...staff....

or it could go well ....trouble is...she might want it cheap...i

i would get a estate agent and value it...(they are free)...see what price he/she comes up with ...then take that to your friend...

she does not have to keep staff...products....clients....but if you ask ....you could agree to give all the products....staff....and clients a go....

good luck with what you decide hun xxxxxxxxxx

 

[nicjill]

To be honest, she's not a friend, more friend of a friend so I'm not bothered about falling out with her. I know she's a business woman and will see the potential but try to bully me into selling far below what its worth.

I thought about having it valued but if its same as houses, I believe there is a clause in valuations that they can claim a fee if you sell privately after a valuation. I'm not 100% on that but I've heard that before.

 

[sj1973]

To be honest, she's not a friend, more friend of a friend so I'm not bothered about falling out with her. I know she's a business woman and will see the potential but try to bully me into selling far below what its worth.

I thought about having it valued but if its same as houses, I believe there is a clause in valuations that they can claim a fee if you sell privately after a valuation. I'm not 100% on that but I've heard that before.

i would phone them and ask hun....just to make sure for yourself....

as for the friend of a friend....i would (if you could)put something in the contract that she has to keep staff...clients ...and stock for say...6 months....has this friend of a friend said how much she will offer you for it????

 

[loubylou]

Ask your accountant hun he should be able to give you loads of advise about the value and the best way to sell hth

 

[minky]

Hi will you just be selling just the business on a lease that is rented ?

or will you be selling the whole business including the property ?

I assume with you owning the flat above you must own the whole property ?

If this is the case you may be wise to use an estate agents and make all dealings though the agents ,
as for the person who is interested you should not commit yourself just yet
as it hasn't even been valued , x

.

 

[nicjill]

Hi guys, thanks for the responses. I looked into getting it valued and the agents won't value it unless you put it up with them.

The property is leased, including the flat. I own the business but not the property although I am allowed to sub-let the flat to earn an extra income if I don't use it myself, which works out nicely as the rent from the flat covers a good chunk of the rent I pay.

 

[fozzyo]

A very good question, how to value a business. In the first instance I'd talk to your account and bank manager for advice on making the sale and valueing the business.

From my very limited experience, things to look at include the capital assets (stock, equipment, tools etc), the turn-over, profit etc. All of these are very easy to put a value on - the one that isn't is the brand. Don't forget you aren't just selling stock, fixtures and fittings you are also selling the brand / reputation of your Salon. The name 'Virgin' stands for a lot and brings respect to products and companies it is associated with, its worth a lot of money but it isn't anything physical. Its just a brand. Now I suspect your salon isn't as well known as Virgin ... or is it? You have a good local client base who respect and value your salon, the name and what it stands for - don't undervalue that!

Do you intend to sell the 'name' of the Salon in the sale? Make sure this is included in any contracts if you are considering setting up elsewhere under the same name / brand.

Just some things to think about.

Good luck and the only other thing I can think of is to take your time ... think about it carefully, review and review any contract of sale and ensure you are completely 100% happy with it - don't sell with worries, concerns or "what ifs".

Mat

 

[sj1973]

Hi guys, thanks for the responses. I looked into getting it valued and the agents won't value it unless you put it up with them.

The property is leased, including the flat. I own the business but not the property although I am allowed to sub-let the flat to earn an extra income if I don't use it myself, which works out nicely as the rent from the flat covers a good chunk of the rent I pay.

really......is the reason they wont value it because its a business?????....here you get FREE valuations for houses....never done a business as i work from home.....cant see how estate agents cant value it just because you MIGHT not sell it through them...the mind boggles....xx

 

[minky]

Hi guys, thanks for the responses. I looked into getting it valued and the agents won't value it unless you put it up with them.

The property is leased, including the flat. I own the business but not the property although I am allowed to sub-let the flat to earn an extra income if I don't use it myself, which works out nicely as the rent from the flat covers a good chunk of the rent I pay.

Hi , so you will be selling a business that is on a lease with an occupied rented flat, (if you decide to go ahead that is )

If I was to look at a business for sale I would want to know ;
how long is left on the lease ?
Is the lease guaranteed renewable ?
Are all your books up to date ?
Is the business in a good spot ?
Is the business making a decent profit after all deductions ect ? (proof would be required )
I would also ask about rates ect


I would ask you the reason why would you want to sell it ?

A potential buyer may want to live in the flat above , and may ask you is that possible ?

(You may need a little more time to get everything in order)


Obviously you should not disclose all of the above answers on here .


This is just a rough idea of what a buyer may need to know about the business, and I'm sure some other geeks can add to it also

I don't think you should have any problems selling as it seems like a good little biusness
good luck and let us know how you get on ,

hth x

.

 

[nicjill]

Thanks for all the help guys.

Minky: I can answer all of those questions easy enough and yes it is a good little business. It's just a bit far away to travel for the hours I put in. I didn't mind before but in my current situation I think I'm ready to sell up and take a break for a while.

Think I'm gonna see what happens with the people I have interested at the moment and then decide if I'm prepared to put it on the market. I think selling it through an agent is the only way I'll get what it is actually worth & I'll just have to stop worrying so much about letting my clients down.

 

[minky]

Thanks for all the help guys.

Minky: I can answer all of those questions easy enough and yes it is a good little business. It's just a bit far away to travel for the hours I put in. I didn't mind before but in my current situation I think I'm ready to sell up and take a break for a while.

Think I'm gonna see what happens with the people I have interested at the moment and then decide if I'm prepared to put it on the market. I think selling it through an agent is the only way I'll get what it is actually worth & I'll just have to stop worrying so much about letting my clients down.

Hi nicjill;696186 I think you are totally right to go with an agent ,

I know its really hard to stop worrying about clients ,
but I am sure whoever takes over the business will want to keep them all happy ,

I hope you get a fair price after all the hard work you have put into it, :hug:
the person who buys it will have a fab little business that they can add to ,

good luck for the future and every happiness :hug: x


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