Beauty Businesses For Sale

What types of business models does the beauty industry offer?

Beauty businesses, especially salons, spas, and med spas, can operate under a variety of business models, each affecting valuation and buyer interest differently. We’re experienced in analyzing and marketing all of them:

• Open Station Rental:  Stylists rent chairs or stations within a shared salon environment. This model provides steady rental income and low overhead but may involve less brand control.
• Room/Suite Rental: Common in med spas and esthetics studios, this model involves leasing enclosed rooms or suites to independent professionals (e.g., hair stylists, estheticians, massage therapists, lash techs). It offers strong passive income potential with minimal management needs.
• Commission-Based: Stylists or service providers work as employees, earning a commission on services rendered. This structure allows for greater control of branding, service consistency, and customer experience, but includes payroll, staffing, and higher overhead costs.

What types of beauty businesses do you help buyers acquire?

We assist buyers in acquiring various types of beauty businesses, including hair salons, day spas, skincare clinics, cosmetic stores, professional beauty supply stores, and beauty franchises.

How do I know if buying a beauty business is the right investment for me?

Our team will provide options that meet with the goals and preferences you provide in your initial consultation. We’ll help identify beauty businesses that align with your financial goals, personal interests, and skill set.

What is the typical process for buying a beauty business through First Choice?

The process begins with an initial consultation to understand your preferences, followed by identifying suitable beauty businesses, negotiating terms, and guiding you through the closing process.

Are financing options available for buying a beauty business?

Yes, we work with lenders who specialize in beauty business acquisitions, including options for equipment financing, working capital loans, and SBA loans, depending on the size of the salon/business.

What is the typical timeline for purchasing a beauty business?

The timeline typically takes several weeks to a few months from initial inquiry to closing, depending on the complexity of the business and terms of the sale.

Do I need prior experience in the beauty industry to buy a business?

While prior experience in the beauty industry is beneficial, it is not required. We can help you identify businesses that align with your skills and provide the necessary support throughout the process.

What kind of due diligence should I perform before buying a beauty business?

Due diligence is crucial. We recommend a thorough review of financial records (tax returns, profit & loss statements), lease agreements, client contracts, employee agreements, licenses and permits, and any legal or regulatory issues. You should also assess the condition of equipment, the local competition, and the business's online reputation (reviews, social media presence). We can guide you through this process and recommend qualified professionals to assist you.

How can I ensure a smooth transition of ownership after purchasing the business?

A well-structured transition plan is essential. This includes clear communication, after the closing, with staff and clients about the change in ownership, training on any new systems or procedures, and a handover period where the previous owner can assist with introductions and knowledge transfer. We can offer suggestions and advice to help facilitate this process to minimize disruption and maintain client loyalty

Beyond the initial purchase price, what other costs should I consider when buying a beauty business?

Beyond the purchase price, you should factor in costs for security deposits for leased locations and utilities, also any desired legal and accounting services, loan closing costs (if financing), additional inventory costs, and working capital to cover initial operating expenses. The seller can often be helpful in developing a realistic budget for business related expenses.

Are there any hidden fees in the buying process?

Everything is fully transparent for all fees and costs involved in the buying process. The seller traditionally pays the broker fees and the buyer and seller typically split the expense of the third party closing entity. Your broker can review these items in detail as they can vary from state to state.