Buying a Nail Salon: A Due Diligence Checklist
Buying a salon is a big investment. Listings usually show only revenue and price; the rest you have to verify. Here's what to check before putting down a deposit.
Is the revenue real?
Ask for the books, POS reports, bank statements and the salon's tax returns for recent months. Verbal revenue figures are often higher than reality.
If you can, spend a few weekdays and weekend days at the salon and count customers yourself.
The lease
Check the rent, remaining term, renewal options, scheduled increases, and whether the landlord will assign the lease to you. A busy salon with a lease about to expire is a real risk.
Staff and regular clients
Ask which techs will stay after the sale. In the nail business, clients often follow their tech; if key techs leave, revenue can drop.
Licenses and equipment
The salon needs an establishment license under state rules, which usually must be reissued or updated when ownership changes. List the included equipment (pedicure chairs, tables, dust collectors) and its condition.
Estimating a price
A simple approach is annual profit times a multiple. Use the salon valuation tool for a starting number, then have an accountant or attorney review before you sign.