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I'm in the process of buying a hair salon in Florida.

What are some hair salon specific things I should look for in regards to due diligence and/or things I should look for? The place rents out its nail salon and massage table. Thanks in advance.

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Answers (2)
Mark Smith
Century 21 Shaw Realty
Business Broker/Mortgage Loan Originator/Realtor
Hillsborough County, FL

Seeking an Attorney's advice and CPA is alway a good decision. You can also seek out a qualified Business Broker that has access to all past sales and current sales of hair salons in the state and area. By comparing other businesses of the same type by monthly cash flow your valuation of price is very easy to determine.Avoid paying too much.Generally the rule is that the value of a business is determined mostly by what it earns not by the value of all the assets.Have your CPA and/or Attorney review the the books and tax statements for income and expenses and you should do ok. Look for salaries payed to owner or children of owners on the books. Good Luck markasmithtampabay.com

Feb 14, 2010
Robert Cutler
Attorney
New York County, NY

David, you should hire a lawyer and an accountant who can properly diligence the business.

Feb 12, 2010

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