You want to sell your beauty salon? Then it's good to know what the takeover market in the beauty salon field looks like. At the time of the corona crisis, salons were closed for several months. Those that have been innovative, or have moved their business to the Internet, will certainly bring about growth and acquisition opportunities.
Specific figures on the number of beauty salon acquisitions are not available, but for the wellness sector in general, there has been an increase in recent years. Since 2017, the number of mergers and acquisitions has been steadily increasing and this trend is expected to continue.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the hospitality, tourism and recreation sector - to which a beauty salon belongs - an indicative EBITDA multiple range of 2.9 to 4.0 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Do you want to buy a business or sell a business in the Hospitality, Tourism & Recreation sector? With this Brookz Sector Monitor we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the Hospitality, Tourism & Recreation sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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In an affluent society, people have more money to spend on personal care and wellness. Especially the current generation of young people sees the necessity of self-care and salons thrive on this. According to Marktdata.nl, 23% of the target group up to age 65 regularly get treatment and 12% of seniors over 65 regularly visit a salon. Of all visitors, 58% say they book a treatment because it's a nice moment of relaxation, while over 25% say a nice appearance is the most important reason.
According to the(CBS), the majority of salons are small in nature and have few employees or are one-person businesses:
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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A number of trends and developments will inevitably cause changes over the next few years, but also offer beauty salons many growth and acquisition opportunities:
As professionals from different sectors and disciplines will begin to work together, cross-disciplines will be formed more often. Beauty salons are attracting other disciplines, such as pedicure and massage, thereby expanding their market segment.
Where previously a visit to the beauty salon was seen as pampering, today it is increasingly an extension of the (home) doctor. No longer are only cosmetic treatments performed, but there is an increasing demand for medical specialties. Visitors fall more and more under certain risk groups, so the beautician is also used to treat skin diseases or give preventive lifestyle advice.
International trends have a positive impact on the situation of salons. Whereas in the past beauticians provided treatments locally, today salons are often up to date with all kinds of trends. Because the world is at your feet with the ever-increasing offerings online - think YouTube & e-commerce - salons are growing in segments where this was not the case before. Think gender neutral skin care products, their own skincare line sold online and treatments that undo the effects of air conditioning, for example.
