|
General Tanning Industry Discussions Tanning Salon Owners and Professionals in The Tanning Industry Discuss a wide Variety of Topics. |
| LinkBack | Thread Tools |
03-21-2007, 02:52 PM | #1 (permalink) |
Join Date: Mar 21 2007 Location: PA
Posts: 2
Rep Power: 0 | looking to buy :angel: Hello out there...my husband and I are looking at buying a salon currently. The salon has been in business for 13 years and the owners say that it is making money. The problem is that the owners tax returns do not show this, in fact looking at the tax returns, well it looks like crap! But they keep saying that this is a cash business...anyone have anything that might help us out?? Also how can we figure out what this salon might be worth (a purchasing price??) I know that these sound like lame questions....but we have done the research and know that we are going to need to put a lot into this to make money, or more money. This salon has the traffic (hubby has sat in the parking lot a few times to watch the customer flow and it is all positive)?? HELP!!!! |
03-21-2007, 03:01 PM | #3 (permalink) |
Join Date: Mar 21 2007 Location: PA
Posts: 2
Rep Power: 0 | Re: looking to buy And I do know that, but with this being the busy season there should be heavy customer traffic. I just want to know how to get the current owner to prove that his numbers are accurate since they are not what his tax returns show... |
03-21-2007, 06:19 PM | #7 (permalink) |
I Love Derf!! Join Date: Dec 26 2006 Location: Heart of Sand Mountain
Posts: 340
Rep Power: 19 | Re: looking to buy The price one pays for a cash cow, when you want to sell it..................SHOW ME THE MONEY. RAT HOLE money don`t show up on the books and income taxes!! But, when you go to sell it...You have to show the buyer what it takes in.........;) |
03-21-2007, 06:19 PM | #8 (permalink) |
Join Date: May 31 2005
Posts: 25
Rep Power: 0 | Re: looking to buy The value of the salon should be based on its net earnings as reported to IRS. Salon owners will often artificially inflate the salon's earning by saying that it's a 'cash' business. Last edited by SolarFission; 03-21-2007 at 06:58 PM. |
03-21-2007, 06:33 PM | #9 (permalink) |
Team TanTalk Join Date: Jul 13 2004 Location: Menomonie, Wi. Age: 82
Posts: 3,145
Rep Power: 22 | Re: looking to buy Skimming from a cash business is all fine and dandy if you never intend to sell. The problem comes, as your current experience explains, when you do decide to sell. Show me the numbers! There ain't' none. Well what am I buying? All you can determine is the value of the equipment and inventory. Buildout is worth nothing because it belongs to the landlord. You don't buy blue sky in this business because all those customers can leave you in a heartbeat. Be careful. |
Bookmarks |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | |
Thread Tools | |
| |