jarodj

I'm looking to buy a couple salons and am looking for help in finding the value of the beds in place.
Here's the information I have on the beds
Sunvision 4-28-2F (2002)
Sunvision 30-3F (2002) with around 3300 hours and one with 1400 hours
Sunstar 32-3f with 1800 hours
Solar Force 52-4f (2004) 807 hours

When purchasing the salons should it be priced closer to the current value of the beds/assets, or in line with the cashflow?

I appreciate the help.

sunsally

New that equipment would have cost approx $40K

Used you would get maybe 15-20K on it now.

It is a very poor "mix" of equipment. You basically have 3 "levels" of beds that are all substantially the same. You will see little if any results difference, and therefore shouldn't try to charge a price difference, between the 28, 30 & 32 lamp beds. And then even the "big bed" is still a 100W bench.

Purchase price is up to you to negotiate. If the salon is profitable, you may be willing to pay based on the level of profits. If it is not making a profit, you may be more interested in just paying for the "asset value" of the equipment. There is no "right" way - just what both sides will agree in the final negotiation.

sunsally

double post

megatanman

Assess the value of the equipment and base your offer on that.Unless they have accurate bookeeping,it will be all that you have to go on.I am a firm believer in asset purchase,theres no liability that way and no obligation to honor outstanding packages that may have been sold in an effort to "clean up" before the transfer.

excitednewguy

Not worth a lot. Base your purchase more on gross revenue for the business. Make sure to check it out thoroughly, find the trends throughout the years, confirm revenue from tax returns, do not accept a "spreadsheet" from someone showing you what they make. Most of the time, there is little or no value in the FF&E of a business like this. Beds will be worth something of course, but they are all so different, ranging from a Kia to a Bentley. Things like Air Conditioning, Electrical Build Out, Sheetrock, etc.etc., the items that would cost you substantially out of pocket if you built a salon yourself, I would put some value on these as well.

It's really all about how much money are they making, is it consistent.......