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Broker Name:Ronald Cervelli
Broker Email:contactus@regalconsultants.com
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Modern Salon
(Hair and Beauty, Hair Salon)
Ocean County, New Jersey
Listed Price: $ 175,000
Listing ID: SLN180

Listing DetailsGross Revenue: $ 315,000
Cash Flow: $ 110,000
FFE: $ 98,000 (Included in Price)
Inventory: $ 2,500
Reason for Sale:

The purpose of this business transaction is due to the owner's retirement.


Training & Support:

The owner will remain post-closing and is prepared to supply an appropriate transitional period to the new owner / operator. Also, if required the seller may be available to supply additional training, at a fair cost to the purchaser.


OperationsYear Established: 1986
Employees: 5
Absentee Owner: No
LocationLease Expire: 0000-00-00
Lease Security: 3500
Monthly Rent: $ 2,041
Square Footage: 1623
Facilities:

This successful retail facility which consist of multiple floors, approximately 1,623 square feet has a modern and attractive professional appearance. The business is in a mid-size commercial mall with various other active and successful businesses. This opportunity is in central New Jersey, Ocean County, which consists of various highly populated communities with continued demand for this industry.


SummaryBusiness Description:

Modern twenty-five-year-old, highly successful hair salon consisting of an attractive single unit commercial condominium. This salon facility has a gross yearly income of $315,000 and a net income to the owner operator of $110,000. The business has been recently upgraded with an attractive image. The business also services a huge 55 plus adult community. This is a dependable safe business opportunity and based on the asking price, required down payment and yearly net income, this business expects to supply a consistent return on investment to the owner operator. This is a dependable safe business opportunity and based on the asking price, required down payment and yearly net income, this business expects to supply a consistent return on investment to the owner operator. This business opportunity industry requires state government licensing approval to operate in addition to the standard required municipal licenses. This successful retail facility which consist of multiple floors, approximately 1,623 square feet has a modern and attractive professional appearance. The business is in a mid-size commercial mall with various other active and successful businesses. This opportunity is in central New Jersey, Ocean County, which consists of various highly populated communities with continued demand for this industry. Regarding employees and payroll, this wonderful hair salon company has five full / part time employees who are unaware of the pending sale. The payroll is primarily based on a set payment and commission, the staff is fully expected to remain post-closing, and the monthly payroll expense is approximately $8,800. The business transaction has an assignable commercial lease which expires 2023-01-01, plus additional options available, with a monthly rent of $2,041, cost per square foot is estimated at $15.09, and rent security of approximately $3,500. This business opportunity is in a free stranding commercial facility, on an active county road, consists of approximately 1,623 square feet and has an estimated capacity for twenty customers. The business fixed assets has an estimated value of approximately $98,000 which is based on the original equipment and licensing buildout & replacement cost in addition to the existing net yearly income. This transaction consists of a fully equipped commercial retail store, which includes, required licenses, sinks, displays, shelving, POS system, tables, computers, software including all the necessary equipment to maintain the day to day business operation and a list of assets will be supplied to purchaser upon request. The facility has appropriate private mall parking on site as part of the commercial lease. This successful hair salon business operation is active five days per week, with hours from 8:00 am to 6:00 pm. The sale includes all required documentation including a certificate of occupancy from the local municipality and the required state or city licenses to conduct its day to day business. The owner will remain post-closing and is prepared to supply an appropriate transitional period to the new owner / operator. Also, if required the seller may be available to supply additional training, at a fair cost to the purchaser. The purpose of this business transaction is due to the owner relocating retirement out of the state of New Jersey. The business can be further expanded by the new operator, the salon presently does not have a marketing plan, no local advertising, no web site and if improved can further develop the business yearly gross sales. Regarding competition, to the best of our knowledge, due to various circumstances, no other new competitors are expected near to this business. Additionally, the owner has agreed to supply an appropriate non-compete agreement to the purchaser. The 2017 yearly gross income represented by the seller owner is $315,000 and the business has a yearly net income of approximately $110,000 based on an onsite owner operator and prior to any debt service. Also, due to the possibility of non-disclosed income, a formal due diligence is recommended by the purchaser. The business has been valued / priced at $175,000 which is based on a multiple of the net yearly income and includes the value of the specific business assets. Also, possible seller / bank financing has been conditionally approved to a qualified buyer with an appropriate down payment, collateral and credit rating. The company routinely has approximately $2,500 of marketable inventory and the purchaser will be responsible for that cost at time of closing, based on wholesale value. Please do not disturb business, this sale is confidential, the employees are Unaware of the pending sale, all viewings are by appointment only and the photo does Not represent this particular business opportunity.


Competition:

Regarding competition, to the best of our knowledge, due to various circumstances, no other new competitors are expected near to this business. Additionally, the owner has agreed to supply an appropriate non-compete agreement to the purchaser.


Potential Growth:

The business can be further expanded by the new operator, the salon presently does not have a marketing plan, no local advertising, no web site and if improved can further develop the business yearly gross sales.


Financing/Terms:

Possible seller / bank financing has been conditionally approved to a qualified buyer