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Old 11-02-2006, 07:27 PM   #7 (permalink)
movieking
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Re: How to Price a salon 4-sale (help)

If you ask 50 different people how to value your salon you are going to get 50 different answers so here is how I value a business. Either you have a business that is only worth the value of the equipment or you have a profitable business that can be sold for some multiple of cash flow. Remember a business is only worth what someone is willing to pay so what has value to you may have very little value to a buyer. If you are profitable you should be able to get 2-3 times owners cash flow. If not you and the buyer need to agree to what the value of the FF&E (furniture, fixtures & equiment) is. Four year old beds are not going to be worth a whole lot to most people. JMO
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