How Much Is Your Hair, Beauty or Wellness Business Really Worth?
Turnover isn’t value. Here’s how buyers actually look at salons, spas and wellness businesses — and the factors that move the number.
Read articleYoga studios and wellness businesses are built on community. That’s what makes them special to own — and it’s also what buyers want to understand before they make an offer. Here are the things they look at most closely.
Recurring revenue
Memberships, class packs and ongoing programmes give buyers confidence that income will continue after the sale. Track member numbers, churn and average spend monthly so you can show clear trends.
A timetable that doesn’t depend on you
If you teach most of the classes, buyers will worry about what happens when you leave. Gradually handing classes to a reliable teaching team is one of the most valuable things you can do before selling.
Teachers and practitioners who will stay
Clear agreements, fair pay and a positive culture help retain teachers through a change of ownership — and buyers will ask about all three.
A welcoming space and secure lease
Buyers look for a well-maintained space in a good location, with enough lease term remaining to make their investment worthwhile.
Additional revenue streams
Workshops, teacher training, retreats and retail can add meaningful value, provided they’re documented and not entirely reliant on the owner.
A community story
Reviews, social engagement and member loyalty tell buyers your community is real. Presented well, this story can set your business apart.
Thinking about the future of your studio or wellness business? A free, confidential appraisal is a simple, no-pressure first step.
Catheryn Wright
Business Sales Specialist for hair, beauty, medi-spa and wellness businesses, and Co-Founder of Magellan Business Sales. More about me.
