You want to sell your hair salon? Then it's good to know what the takeover market in the field of hair salons looks like. Hairdressers are generally guaranteed work, as people need regular haircuts. Yet many salons choose to offer cross-industry work, such as beauty treatments or wellness.
The number of consolidations in this industry has more than doubled in the last decade.
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 retail sector, which includes a hair salon, an indicative range of EBITDA multiple of 1.9 to 3.0 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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Want to buy a business or sell a business in the retail 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 retail sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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There are many startups in the industry every year, which also makes many businesses with only one person working visible.
In figures, the number of hair salons in 2024 looked as follows(CBS):
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 in the coming years, but also offer hair salons many growth and acquisition opportunities:
A hair salon on four wheels, that seems to be an emerging trend. By driving a barber truck or barber bus to events, such as fashion shows or festivals, visitors can also impulsively visit the specialist.
The above trend would absorb some of the hairdressing appointments, but what about the lost revenue due to working from home? According to ABN Amro, working from home will largely remain the norm, causing hair salons near office buildings to miss out on visitors, for example.
A hair salon at home, increasing the home value but keeping operating costs low. According to ABN Amro, this is a smart investment and already happens quite regularly, especially in the outer villages. Cutting hairdressing clients near your home leaves plenty of time for family life, informal care and other duties.
As consumers, we are out for convenience and luxury, so a one-stop-shop concept is like a warm bath. By also having makeup done at the hairdresser's immediately, having a beauty treatment, pedicure or manicure, there are time savings for the customer.
