The health and beauty sector offers business owners self-fulfilment and happiness, with beauty therapists rated the happiest workers in the UK (scoring 9/10 in the City & Guilds happiness index). But what happens when the time has come to move on? Sharing that happiness with a budding buyer can lessen the blow of selling your business.
Before even considering the sale, the seller needs to decide on what they want to do with the property. If you currently lease your premises, the new buyer will be assigned the lease and carry on paying rent for the property. If you own the freehold then you have a choice to make. Do you want to keep hold of the building to lease to a new purchaser, or include the building within your sale?
Consider Your Assets
What makes your business valuable? What makes the business tick? In a health and beauty business, you are bound to have hard and valuable assets such as beauty and tanning equipment, wash basins, beds, licenses and other product inventory. A buyer’s dream is to walk into a fully equipped business rather than having to purchase these key items themselves.
Consider not just the physical, but the intangible assets like reputation, clientele and key personnel. Intangible assets may not increase the value of your business, but they will definitely make it more saleable. Your clients may visit your business purely for the atmosphere. If this is the case, list the atmosphere as a core value when selling the business.
Value Those Assets
Once you’ve decided on what you’re including in your sale, calculate a price for it. Start by documenting a spreadsheet of all the costs. Giving an honest representation of the business’s value will incline the buyer to trust your judgement over an advert covered in TBC’s. The financial document should contain an analysis of cash flow, profits, assets and liabilities. Sharing the document with the potential buyer allows them to understand the internal workings of the business. The value of your salon relies heavily on the most recent profits, as they can determine the scope for growth.
Once the business has been valued, the next stage to selling your business is to list your business for sale. Sellers often fall at the last hurdle when selling a business. A business cannot sell without targeting the right buyer. Using a business broker, such as Intelligent Business Transfer, allows the experts do all the hard work for you. They’ll already have experience selling a range of health and beauty businesses, from hair salons and massage parlours to tanning and makeup businesses, so you know their methods are tried and tested. A free business valuation can be arranged to guide your business into the market. You can organise a confidential valuation with Intelligent Business Transfer here or call 0800 612 7718.