You want to sell your tanning salon? Then it is good to know what the takeover market in the field of tanning bed studios looks like. Like hospitality businesses, the wellness sector had a difficult time during the pandemic. Recovery is now evident, but studios need to keep a close eye on trends to ensure their livelihood.
This industry experienced tough times in the covid pandemic, but trends also play a role in the crowded merger and acquisition market.
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 hospitality, tourism and recreation, the sector to which tanning bed studios belong, an indicative range of EBITDA multiple 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).
Do the calculation
This sector has a lot of self-employed people, and therefore the number of businesses with one employed person is relatively high.
In figures, the number of tanning bed studios 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!
To Brookz Academy
A number of trends and developments will inevitably cause changes over the next few years, but also offer tanning bed studios many growth and acquisition opportunities:
Going to the tanning salon every week for a summer glow is proving less and less popular. The high dose of UV radiation that creates your glow also increases the risk of skin cancer. And more people aren't finding that risk outweighs the temporary tan. Radar research shows that 58% of respondents oppose a ban on tanning beds. Only news for tanning studios.
With personal health in mind, tanning studios do well to offer a total experience in the studio. The tanning bed can be one of the devices, but for a complete care and true wellness feeling, as a tanning studio you can pamper the customer by offering conditioning creams, foot baths and other wellness treatments.
Questions? We are at your service every working day from 09:00 - 17:30.
