I am looking at purchasing a salon. The owner is asking $60.000. I have been in to look at the place. Doesn't need any renos. Pretty much just unlock the door and open for business. There are 3 lay downs and 1 stand up. The beds are within 5 years old. A little beat up but you wouldn't know unless you were really looking at the equipment. The total assets are $9000.00 including the beds. Here's the thing....this owner bought the salon in August. He has had it for 6 months. He is selling for personal reasons as he explained to me. This is where I need help. He has no paper work from the previous owners sales etc. I got it out of him he paid $40,000.
The sales for the last 6 months are aprox $16,000.00. The expenses were around $10,000. I know it is the slow season is this normal?
Next they use the old paper card system. I am going to go through the files to determine how many current clients there are. The lease is very reasonable and the business itself has been there for 8 years. The previous owner had it for several years but had staff running it.
Please if anyone can give me some guidance on this that would be great
Thank you
.:Happy:

jenifer22