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.
Salon stock moves every day, so it would be impossible to fix its value months before completion. Instead the asking price covers the business and the equipment, and the products are counted when the keys change hands.
How the count works
Usually the buyer and seller count together on the last day, or agree an independent stocktaker. Products are valued at cost, not retail price, and anything out of date, opened or discontinued is normally left out or reduced. The total is added to the completion payment.
What to watch
- Agree in writing which products count as stock and which are equipment.
- Many sale agreements cap the stock figure so the buyer is not surprised by a large bill on the day.
- Do not stock up before you sell. A buyer will only want what they can use or sell.