what should i offer? - tanTALK

galaxie · 11-06-2010, 01:47 AM

looking at purchasing existing tanning salon. Established for 4 1/2 years. Current tax return for last year shows a net of $110,000. It has employees that work the salon and the owner oversees the operation. Equipment is roughly 2 years old. Salon is in great shape. Question is what do i offer. 2x the net ???

Robert K · 11-06-2010, 08:34 AM

So the salon made $110,000 in profit?

How much did it grosss?

galaxie · 11-06-2010, 10:07 AM

It grossed $235k. The profit is $110k.

galaxie · 11-06-2010, 10:09 AM

In the first three years it shows 30% gains. Last year was a 20% gain and this year so far shows a 10% gain over last years gross. How does that stack up against the average. It seems decent given the economy.

parrot head · 11-06-2010, 10:19 PM

First question, why in the world would an absentee owner who nets $110,000 want to sell? How does this stack up? Well if you've been on the forums, you know the answer to that.

planatan · 11-07-2010, 01:16 AM

How much is the owner asking?

planatan · 11-07-2010, 01:19 AM

Also, why did they replace 2 year old equipment with brand new equipment, seems like a big expense so soon.

vanrooy55 · 11-07-2010, 06:42 PM

That is good. We are going the wrong way in this economy..down over 30% in the last 2 years...

galaxie · 11-07-2010, 10:42 PM

The owner is asking $275k. The equipment won't justify that number so its a function of the profit in my eyes. I wasn't clear on the beds, he added two beds 2 years ago the rest are when he first established the salon. So what do you think I should offer?

vanrooy55 · 11-08-2010, 06:42 AM

Actually, you might be surprise with this economy so I would start at $150K but no more than $220K. Good Luck:-)

11-06-2010, 01:47 AM	#1 (permalink)
galaxie Join Date: Nov 6 2010 Posts: 7 Rep Power: 0	what should i offer? looking at purchasing existing tanning salon. Established for 4 1/2 years. Current tax return for last year shows a net of $110,000. It has employees that work the salon and the owner oversees the operation. Equipment is roughly 2 years old. Salon is in great shape. Question is what do i offer. 2x the net ???

11-06-2010, 08:34 AM	#2 (permalink)
Robert K Team TanTalk Join Date: Aug 27 2002 Location: East Coast Age: 56 Posts: 2,888 Rep Power: 22	Re: what should i offer? So the salon made $110,000 in profit? How much did it grosss? __________________ Robert Klem Superior UV Technologies (888) 526-7712 x77 robertk@superioruv.com

11-06-2010, 10:07 AM	#3 (permalink)
galaxie Join Date: Nov 6 2010 Posts: 7 Rep Power: 0	Re: what should i offer? It grossed $235k. The profit is $110k.

11-06-2010, 10:09 AM	#4 (permalink)
galaxie Join Date: Nov 6 2010 Posts: 7 Rep Power: 0	Re: what should i offer? In the first three years it shows 30% gains. Last year was a 20% gain and this year so far shows a 10% gain over last years gross. How does that stack up against the average. It seems decent given the economy.

11-06-2010, 10:19 PM	#5 (permalink)
parrot head Team TanTalk Join Date: Jul 13 2004 Location: Menomonie, Wi. Age: 82 Posts: 3,145 Rep Power: 22	Re: what should i offer? First question, why in the world would an absentee owner who nets $110,000 want to sell? How does this stack up? Well if you've been on the forums, you know the answer to that.

11-07-2010, 01:16 AM	#6 (permalink)
planatan Join Date: Feb 14 2004 Location: Florida Posts: 131 Rep Power: 21	Re: what should i offer? How much is the owner asking?

11-07-2010, 01:19 AM	#7 (permalink)
planatan Join Date: Feb 14 2004 Location: Florida Posts: 131 Rep Power: 21	Re: what should i offer? Also, why did they replace 2 year old equipment with brand new equipment, seems like a big expense so soon.

11-07-2010, 06:42 PM	#8 (permalink)
vanrooy55 Join Date: Nov 7 2010 Location: Indianapolis, IN Posts: 9 Rep Power: 0	Re: what should i offer? That is good. We are going the wrong way in this economy..down over 30% in the last 2 years...

11-07-2010, 10:42 PM	#9 (permalink)
galaxie Join Date: Nov 6 2010 Posts: 7 Rep Power: 0	Re: what should i offer? The owner is asking $275k. The equipment won't justify that number so its a function of the profit in my eyes. I wasn't clear on the beds, he added two beds 2 years ago the rest are when he first established the salon. So what do you think I should offer?

11-08-2010, 06:42 AM	#10 (permalink)
vanrooy55 Join Date: Nov 7 2010 Location: Indianapolis, IN Posts: 9 Rep Power: 0	Re: what should i offer? Actually, you might be surprise with this economy so I would start at $150K but no more than $220K. Good Luck:-)

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