Question 1

Will I get my asking price?

Accepted Answer

Usually not quite, because most salons sell for less than the advertised figure because the asking price is an opening position and buyers negotiate once they have seen the accounts.

Question 2

What is goodwill in a salon sale?

Accepted Answer

Goodwill is everything a buyer pays for beyond the physical kit and the stock: the clients, the name, the bookings and the profit the salon makes. It is usually the largest part of a salon price, and it can be nil if the salon makes little profit.

Question 3

Can I sell a salon that is losing money?

Accepted Answer

Yes. A salon that is losing money can still sell, but buyers price it on what they are getting physically, the fit-out, the lease and the clients in the book, rather than on profit.

Question 4

What does plus SAV mean?

Accepted Answer

SAV stands for stock at valuation. It means the stock is not included in the asking price: it is counted on the day the sale completes and the buyer pays for it on top, usually at what the seller paid for it.

Question 5

Why do websites quote different multiples?

Accepted Answer

Because they multiply different profit figures. The lower multiples, around one to two and a half times, apply to the profit left for a working owner before they pay themselves. The higher ones apply to profit after paying a manager, which is a smaller number.

Question 6

Am I selling a business or a job?

Accepted Answer

If the salon’s takings depend mostly on your own column, a buyer is really paying for a job they then have to do, and they will pay much less for it. The less the salon depends on you, the more it is worth.

Question 7

Do I need my landlord’s consent to sell?

Accepted Answer

Almost always, yes. Most commercial leases say you cannot pass the lease to someone else without the landlord’s written consent, and where the lease says consent cannot be unreasonably withheld, as most do, the landlord can only refuse for a good reason.

Question 8

Can I sell a salon with a short lease?

Accepted Answer

You can, but a short lease is the most common reason salons sell for less than the owner hoped. Buyers and their lenders want to know they can stay long enough to earn back what they pay.

Question 9

Can I sell a home or mobile salon?

Accepted Answer

You can sell one, but there is usually less to sell. With no premises to hand over, a buyer is paying for your clients, your name and your bookings, and those only transfer if clients are willing to follow a new person.

Question 10

Can I sell a salon where stylists rent chairs?

Accepted Answer

Yes. Salons with chair renters and self-employed stylists sell regularly, but buyers see the income as less secure, because a renter can leave on short notice and take their clients with them.

Question 11

What happens to my staff when I sell?

Accepted Answer

If you sell the business, your employed staff normally transfer to the buyer automatically, on their existing terms and with their length of service intact. This is required by the TUPE regulations, and it applies however small the business is.

Question 12

Can I sell my client list?

Accepted Answer

Yes, as part of selling the salon as a going concern. The client records normally transfer to the buyer with the business, but you should only pass on what the buyer needs to keep looking after those clients, and they must use it in the same way you did.

Question 13

What happens to gift vouchers and prepaid courses?

Accepted Answer

They are usually honoured by the buyer, with the value deducted from the price. You have already taken the money for work the buyer will have to do, so the fair approach is to settle the difference at completion.

Question 14

Can I sell my salon to a member of staff?

Accepted Answer

Yes, and it is one of the most common ways salons change hands. A senior stylist or manager already knows the clients and the team, so fewer clients leave, but they often need help funding the price.

Question 15

How much tax will I pay when I sell?

Accepted Answer

Usually Capital Gains Tax on the profit you make from the sale. If you qualify for Business Asset Disposal Relief, the rate on qualifying gains is 18% for sales from 6 April 2026, up to a lifetime limit of £1 million.

Question 16

Should I sell the shares or the business?

Accepted Answer

Most small salons are sold as a business, known as an asset sale, even when they are run through a limited company. Share sales are simpler for some things and more complicated for others, and the right choice usually comes down to the lease and tax.

Question 17

Is there VAT on the sale of a salon?

Accepted Answer

Usually not. When a salon is sold as a going concern to a buyer who carries on the same business, the sale is normally treated as a transfer of a going concern, which is outside the scope of VAT.

Question 18

Will I be stopped from working nearby?

Accepted Answer

Almost certainly for a while, because buyers pay for your clients, so the sale contract will normally stop you working, opening a salon or contacting clients within a set distance for a set time.

Question 19

Do salon licences transfer to a buyer?

Accepted Answer

It depends on the licence and the council. Salons offering massage, beauty treatments, tanning or skin piercing may need a local licence, and when the business changes hands the new owner usually has to transfer or reapply for it.

Question 20

How long does it take to sell a salon?

Accepted Answer

Typically four to six months from going to market to completion. A well-priced salon can find a buyer in weeks, and once a buyer is agreed the legal work and the landlord’s consent usually take another six to twelve weeks.

Question 21

What paperwork do I need to sell?

Accepted Answer

Two or three years of accounts, recent takings, the lease, staff or chair rental details and an equipment list. Having them ready before you list means interest turns into an offer without weeks of waiting.

Question 22

How do buyers pay for a salon?

Accepted Answer

Mostly from savings, family, personal loans or the proceeds of another business, sometimes with part of the price paid to you in instalments. High-street banks lend to salon buyers less often than people expect, so the price has to be one a buyer can actually raise.

Question 23

What are heads of terms?

Accepted Answer

Heads of terms are a short document, usually two or three pages, setting out the main points of the deal once an offer is accepted: the price, what is included, the timetable and any conditions. They are not normally legally binding, but they stop misunderstandings before the legal costs start.

Question 24

Do I have to stay on after selling?

Accepted Answer

Usually for a short while. Most buyers ask the seller to stay for a few weeks to introduce clients and staff, and owners who did much of the work themselves are often asked to stay longer.

Question 25

Should I close my salon or sell it?

Accepted Answer

Selling usually leaves you better off than closing, even at a modest price. Closing can leave you paying rent until the lease ends, repair costs under the lease and redundancy pay, while a sale passes those to a buyer.

Selling a salonyour questions answered

Price and valuewhat a buyer will pay