Seller Financing Available
Elegant Day Spa In Affluent Los Gatos Area
Elegant Full-Service Day Spa in Affluent Los Gatos Metro Area
Santa Clara County, CA
This full-service day spa caters to a loyal upscale clientele with a broad range of services: massage—therapeutic and deep-tissue; comprehensive skin care, facials, face & body waxing, micro-dermabrasion & peels; manicures, pedicures, hand & foot treatments; lash & brow tinting, body wraps, spa packages. Did we say “full-service”? And, the shop offers a broad selection of the highest-quality health and beauty products and accessories.
The business has been serving the area’s elite for over five years and has earned a sterling reputation for professional service and for a friendly, relaxing, serene atmosphere. (Previously there was another spa at the same location for 9 years, so there are 14 years of market presence.) Housed in a custom-designed, tastefully decorated, one-story space of approximately 2,500 square feet, services are offered in several rooms, allowing the five multi-licensed professionals to work simultaneously, while assuring clients privacy and serenity. The property has a large parking lot on a main business thoroughfare with high visibility and easy access.
Seven practitioners are expected to stay indefinitely; in addition, the one owner-manager will stay on for up to six months to provide a smooth transition to new ownership.
Impressive market presence – The company has an extensive, attractive web site, and an outstanding online and social media presence. The customer database includes 5,480 names with contact information; over the last two years, 1,843 have specifically “opted in” to receive regular email notifications and updates. Customers are drawn from a local market, but also from 10 to 20 miles away.
Facility: The spa is in leased premises. Current rent is $2,535.00 with 1-year remaining, and a 3-year option. The landlord, however, is open to negotiating a new longer-term lease with attractive terms.
Financial Summary: Gross sales in 2013 were $241,000 and the seller’s net cash-flow (“SDE”) was approximately $80,000, when calculated assuming a full-time owner-manager. Sales for the first four months of 2014 are running 6% ahead of the same four months in 2013.
The Transaction: The deal structure will be an asset sale. The reason for sale is the sellers’ desire to retire and to relocate outside the area. The one owner-manager will stay on as an employee for up to six months to provide a smooth transition to new ownership, at the buyer’s option. The asking price is $239,900 (1x annual gross sales), plus retail inventory (at cost); this includes all assets, including all furniture, fixtures, and equipment (FF&E), good will, name, website, customer records, etc., but excluding accounts receivable, accounts payable, and cash. A full, itemized list of furniture, fixtures, and equipment is available to serious buyers. Partial seller financing may be possible for a qualified buyer.
This business is an exceptional value, ~ The spa and shop serve a growing affluent local clientele in a locale that is emerging as a major “bedroom-community” for nearby Silicon Valley. It’s “turn-key”, can seamlessly transition to a new owner, and has potential for increased operations for increased revenue.
Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by Broker as to accuracy. Broker has made no independent verification of the data contained herein. Buyer is advised to perform its own independent due diligence and seek the advice of professionals prior to purchasing the Business.