Has anyone ever valued a hairdressing salon client has an opportunity to buy profits around £30K no material changes to profits upon purchase. The vender has said make 'me an offer' Any thoughts.
Andrew Smith
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That depends
The goodwill of a hair salon attaches to the people who work there; not just the proprietor but the staff as well. The price to pay depends entirely on the expectation that clients will or will not not disappear when the change takes place.
goodwill
You should be able to find the multiple of gross or net to give you the goodwill. At the lowest it is nil and may be 3 times net profit but do check what the current rates are.
Also very important make sure you have a contract drawn up and one important point is that you must retain the telephone number or your clients will just dissapear.