Seller’s guide
How to sell a nail salon
Selling a nail salon takes nine steps, from getting your books and lease ready to handing over the keys. Here’s each one in plain language, plus how to keep your staff and clients from finding out too early.
Written by Tayna Luong, former owner of five nail salons
The short answer
To sell a nail salon: get three years of records together, confirm your landlord will transfer the lease, price the salon on its yearly owner profit (SDE), market it without its name, screen buyers for funding, then close through a licensed escrow company or attorney. Plan on several months. BizBuySell reports a median of about 137 days on market for nail salons.
Source: BizBuySell nail salon benchmarks.
The 9 steps to selling your salon
Decide your goal and timing
Know why you’re selling, the lowest price you’d accept and when you want to be done. Six to twelve months of lead time gives you room to fix what lowers value.
Get your records in order
Gather three years of tax returns, this year’s profit and loss, bank statements and an equipment list. Buyers pay for income they can verify.
Talk to your landlord
Read your lease for an assignment clause, and ask whether the landlord will transfer the lease or sign a new one with a buyer. The lease often decides whether a sale can happen at all.
Value the salon
Most buyers price a salon on SDE, the yearly profit to one owner, times a multiple. See How much is my nail salon worth?
Keep it confidential
Market the salon with a summary that leaves out its name and address. Buyers sign an NDA before they learn which salon it is.
Screen buyers before they visit
Ask for proof of funds or loan pre-approval and salon experience. Only serious, qualified buyers should see the salon or your books.
Negotiate the offer
Compare price, down payment, financing, training period and closing date, not price alone. Get the terms in a written letter of intent.
Due diligence and closing
The buyer reviews your records and the lease. A licensed escrow company or attorney holds the money and handles any required state notices and tax clearances.
Hand over the keys
Introduce the new owner to staff and regulars, and stay on for the agreed training period so clients and technicians stay.
Mistakes that cost owners money
Listing with the salon’s name
Staff and regulars hear first. Technicians leave, and the price drops.
Pricing by feel
A price with no numbers behind it sits for months, then gets cut.
Ignoring the lease
A landlord who won’t transfer the lease can stop a sale at the last minute.
Showing unqualified buyers
Every tour by someone who can’t get funding risks your confidentiality.
Selling on your own vs. with a broker
You can sell a salon yourself. Many owners do, usually to a technician or a friend. A broker helps most when you want the sale kept quiet, a wider pool of buyers, and someone to screen them and manage the lease and closing paperwork. Brokers are usually paid a commission when the salon sells.
A recent result
Asking $450,000. Sold for $450,000.
A salon owner came to us asking $450,000. Within 30 days we found 10 qualified buyers, and the salon sold at exactly his asking price.
Names withheld at the seller’s request. Every business is different, and past results don’t guarantee future ones.
Questions owners ask
How long does it take to sell a nail salon?
It depends on price, lease, records and location. BizBuySell reports a median of about 137 days on market for nail salons sold through its marketplace. Planning 6 to 12 months ahead usually gets owners a better price.
What documents do I need to sell my nail salon?
Usually three years of business tax returns, current-year profit and loss statements, recent bank statements, your lease, an equipment list, and a staff list with roles and pay. Buyers and lenders use these to confirm your income.
Should I tell my staff I’m selling?
Usually not until a buyer is committed. Telling staff early can lead technicians and regulars to leave, which lowers the price. Most owners tell staff near closing, often together with the new owner.
Can I sell my salon if my lease is ending soon?
Yes, but it’s harder. Most buyers, and their lenders, want a lease that runs several years past the sale. Talk to your landlord about an extension or a new lease for the buyer before you list.
Can a buyer get a loan to buy my salon?
Often, yes. Many buyers use SBA 7(a) loans, which usually require verified income and at least 10% down. Clean books that match your tax returns make lender approval much easier.
Does the salon license transfer to the buyer?
Usually not. In most states the establishment license belongs to the owner, so the buyer applies for their own before taking over. Check with your state board of cosmetology.
This guide is general information, not legal or tax advice. Rules vary by state, so confirm the details with your own attorney and accountant. Đọc bằng tiếng Việt: Bán tiệm nail kín đáo, đúng giá.
Know your number before you decide anything
A free, private 10-minute call with Tayna, in English or Vietnamese.