Sunsally,
WELL SAID!
"Key here is NET, not gross. She is NOT making $90K/year!
If beds are paid for, your MAJOR expenses should be rent and payroll. Still, in SOME markets, that could be $90K/year right there! Payroll would be $25K by itself just to have someone at $7/hr for 10 hours/day. Add in electric, phone, water, supplies,
insurance, advertising, etc. You need to find out what HER expenses have been - and then see how similar you think they would be for you (for example - are you assuming her lease, or will landlord want you to negotiate your own, maybe at a different rate?).
500 clients is NOT many at ALL for a 12 year old business. Are those "active" clients or all the people that have ever walked through the door?
The beds are worth maybe $2-3K on the used market. They probably will need re-lamping -- that'll be about $300/bed. Any cracked acrylics to be replaced will be another $200 or so. Better yet, you would REPLACE some of the beds and update the salon. Even a couple of "upgrade" beds could bring in more $$ for you -- but it'll cost you to add them!
On the other hand - you can't set up a place across the street for $20K either! So it really depends on what the costs are, what kind of "return" you are hoping for, what else you could be doing with your time (if you'll work it some/mostly) and money, etc.
If you DO buy this salon - make sure the 2 of you have an understanding about her not selling a bunch of packages right before you take over and having YOU have to "service" them while SHE takes the $$.
Get info re. her costs, and we'll try to help you figure out if they sound about right. "