BreakThru Realty

How Are Salons and Spas Valued?

A salon sells on what it earns and on whether the people who produce those earnings stay. Two salons with the same sales can be worth very different amounts depending on who the clients follow.

Reviewed by Tyson E. Sam, Founder and Broker of Record, BreakThru Realty, Florida License 3565210

Find Out What My Business Is Worth · (786) 914-1017

Earnings First

Most salons and spas are priced from seller's discretionary earnings: the profit plus the owner's pay and personal or one-time costs. A salon where the owner is also the busiest stylist is worth less to a buyer who will not work the chair, because part of the earnings leaves with the owner.

Booth Rent or Staff

Booth or suite rental produces steady, predictable income with low payroll, but renters keep their own clients and can leave. A staffed salon earns more per chair but carries payroll and depends on retaining stylists. Buyers look at how long the renters or staff have been there and whether agreements are in writing.

The Clients and the Book

Buyers ask how many active clients there are, how often they return, and whether the booking system and the client list belong to the business. Retail product sales and memberships add value because they stay with the business rather than the stylist.

Lease, Build-Out and Licences

Plumbing, stations, shampoo bowls and ventilation are expensive to build, so a salon with a good lease and a modern build-out has a floor value even with modest earnings. The salon licence is reissued to a new owner and each professional needs their own licence; confirm the requirements with the state licensing board.

Find Out What My Business Is Worth

Tell us the type of business, the city, how long it has operated, annual revenue, owner benefit or seller's discretionary earnings, EBITDA if you track it, monthly rent and lease expiry, number of employees, how involved you are, why you are selling, your timeline and whether you would consider seller financing. A licensed BreakThru business broker prepares a confidential valuation from comparable sales and replies within one business day. Everything you tell us is confidential, the valuation is free, and nothing is listed or announced unless you decide to sell. Prefer to talk now? Call (786) 914-1017.

Questions Owners Ask

How much is my business worth?
Most owner-operated businesses in Florida sell for a multiple of seller's discretionary earnings: net profit plus the owner's salary, benefits and one-time or personal expenses run through the business. Where the multiple falls depends on the industry, the lease, the staff, the trend in the numbers and how much the business depends on you. A confidential valuation gives you the range for your business and the reasons behind it.
Will my employees, customers or landlord find out?
Not from us. The business is marketed without its name or address, buyers sign a non-disclosure agreement and prove their funds before they learn who you are, and showings happen after hours or are presented as something else. The landlord is approached only once there is an accepted offer, because the lease has to be assigned.
How long does it take to sell a business?
Six to nine months from listing to closing is common for a well-prepared small business, faster when the price is right and the records are clean, longer for businesses that need a licensed buyer or a franchisor's approval. The escrow period after an accepted offer is usually sixty to ninety days.

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