Sell my barbershop or nail salonwhat UK owners need to know

Barbershops and nail salons have a lot in common when it comes to selling. Both run on frequent repeat visits, both are within reach of buyers coming from the trade, and both come with a few particular questions a buyer will ask. This guide covers what they sell for, how buyers value them and how to avoid the mistakes that cost owners money.

What they are selling for

Both are usually valued at around 1.2 to 1.8 times the profit left for a working owner, plus stock. For more detail, read what a barbershop is worth and what a nail salon is worth.

Why buyers like them

• Clients come back every two to four weeks, so takings are steady and easy to evidence.
• The service model is simple and does not need expensive equipment.
• A well-located shop attracts walk-in trade as well as bookings.

What buyers check

• Declared takings. Both trades have historically handled a lot of cash. Buyers and lenders only count what is in the accounts.
• How the team is paid. Chair rent, commission and self-employed arrangements are common. Buyers will check they are written down and would stand up as genuinely self-employed.
• The owner’s chair or desk. If many clients book the owner by name, buyers price in the ones who may leave.
• The lease. Enough years to earn back the price, a sensible rent and the landlord’s consent to assign.

Common mistakes

• Pricing from turnover or from what a neighbouring shop is asking, rather than from profit.
• Advertising the shop by name, which unsettles staff and clients.
• Dealing with unvetted buyers who have not signed a confidentiality agreement.
• Finding a lease problem after a buyer is agreed.

How long it takes

A sensibly priced barbershop or nail salon typically completes four to six months after going to market, of which the legal work and landlord’s consent usually take six to twelve weeks. Here is where the time goes.