If you are considering selling your hairdressing and hair salon business, you may choose to enlist specialist hands to prepare your business for entry upon the open market. The Selling My Business team operate countrywide and interact with over 10,000 actively searching buyers as part of their extensive marketing strategy, including reputable parties in the hair industry.
The hair industry delivers an essential service to individuals across the nation, integral to the British High Street, city centres and local business districts. A report conducted by the Hair and Barber Council and the British Association of Beauty Therapy and Cosmetology (BABTAC) found that the hair and beauty industry contribute £6.6 billion annually to the UK economy. As a significant contributor to the UK economy, the cycle of buying and selling hairdressers and hair salons supports economic growth.
We are specialists in facilitating all types of sales, from those triggered due to retirement, health considerations or to turn your attention towards a fresh challenge. Many business owners establish hairdressing shops to fulfil their desire of operating a salon.
On the other hand, hair salon owners may enter the industry to generate a strong stream and eventually sell the hair salon or barbershop business to release profits. Taking the business sale option is a resourceful route to help generate a strong financial return and transfer ownership smoothly.
When selling a hairdresser shop or hair salon, you may wish to conduct a confidential sale to protect your business from trading uncertainty and to minimise disruption to employees. Protecting sensitive company information with a non-disclosure agreement can ensure confidentiality during the sale process. We run through how to prepare your hairdressers or barbershop to attract buyers and maximise value.
When selling a hairdressing business or a barbershop, you will need to diligently prepare it for the sale process to ensure that all the relevant information has been collated for prospective buyers to view. To prepare your business for the sale process, you will need to produce an information memorandum that will function as a sales pitch for your business. An information memorandum, also known as a ‘sales memorandum’, summarises key information concerning your barbershop or hair salon.
An information memorandum typically conveys the following information:
Prospective hair salon buyers may request further information about the property, such as leasehold charges, annual rent, and property maintenance costs. You may wish to provide a breakdown of your clientele and detail your top service lines, from colouring treatments, occasion hairstyling, to children's cuts.
You may choose to provide seller financing to speed up the sale of your hairdressers or barbershop. At Selling My Business, we can provide seller financing options through a host of competitive lenders we work closely with. Seller financing is a loan offered by the seller to the buyer to facilitate the sale of the business with ease. The buyer will be required to make an upfront payment and repay the remainder in instalments over an agreed period.
If you’re wondering how long your business will take to sell, this will typically depend on the way funding process and the type of buyer you wish to attract. Your business may attract industry veterans with their sights set on expansion, or a new entrant looking to start on their own.
The Selling My Business team will work proactively with prospective buyers to validate expressions of interest. By conducting extensive due diligence, we will verify buyers to ensure their interest is legitimate, including submitting a formal request for proof of funds. This stage is essential as it will help shortlist proceedable buyers and speed up the sale of your hair salon, health and beauty business.
"It was time to sell my hairdressers to a business owner with the necessary capital to keep on top of growing trends in the city. Selling My Business helped attract multiple offers, of which we accepted the highest. "
Tracy - Hair Salon, Nottingham
When valuing hairdressers and hair salon businesses, numerous areas will influence the worth of your business. Your financial position will mark your place in the industry and determine the rank of buyers you are likely to attract. If you’re wondering how much your hair salon is worth, the Selling My Business team can provide a free business valuation to calculate the worth of your company.
When valuing your hairdressers or hair salon, here are some factors that will influence the valuation process:
Due to the labour-intensive nature of the hairdressing sector, the skill set of employees and contract terms will be of interest to prospective buyers, influencing how much they are willing to pay, in addition to the guide price. The reputation of your hairdressing or barbershop brand may also increase the appeal of your business, as first-hand customer reviews and referrals are instrumental in growing your client base.
At Selling My Business, we have over 60 years of experience in the trade of selling businesses, including hairdressers, barbershops and beauty businesses. From boutique start-ups, specialist local hair salons to highly distinguished shopfronts in the hair and beauty sector, we understand what it takes to maximise sale value and find a reputable buyer.
At Selling My Business, we have an in-house team of business valuers with prior experience in valuing hairdressers, hair salons and barbershops. If you’re wondering how to value a hairdressers and hair salon business, our valuation team are on hand to guide you throughout the process. We will proactively work towards maximising the sale value of your business by identifying inefficiencies, finetuning company operations and readying your business to enter the open market.
To conduct a free hairdressers and hair salon valuation, we require three years’ worth of recent company accounts to access information such as profit and loss, cash flow and comprehensive income. This information will illustrate the financial position of your business and keep in check financial health.
Conducting a business valuation can help determine how much your business is accurately worth and provide you with the essential information required to arrive at a suitable guide price. Finalising the sale price of your business should be conducted with care, and any suitable offers should match up to the market value of your hairdressing and hair salon business.
The coronavirus pandemic has had a long-lasting impact on the hair and beauty industry following a year-long shutdown of the mainstay industry. As businesses took this opportunity to virtually educate customers on the importance of hair care and maintenance throughout the series of Covid-19 induced lockdowns, the industry experienced pent-up demand at unprecedented levels following the relaxation of lockdown rules.
As hairdressers and barbershops worked around the clock to satisfy consumer demand, the industry bounced back resiliently, better equipped for economic uncertainty. The pandemic triggered numerous technological advancements, leading to the birth of online hair tutorial schools and social media training sessions. By better engaging and interacting with customers during the Covid-19 pandemic, job opportunities in the hair industry spiralled to an all-time high and made way for a new generation of forward-thinking hair salons.
Contemplating selling your business? Our free, comprehensive guide will walk you through how you can sell your company. Our FREE guide covers all of the essentials, including:
Plus much more...