Fully Accredited Academy of Cosmetology

OCTOBER 04, 2024

The two partners have had a terrific 18 year run as the owner-operators of this large, attractive, academy of cosmetology providing students with individualized, custom education in the fields of cosmetology, manicuring, esthetics and instructor training.

The business is a fully accredited trade school with performance standards recognized by the Department of Education. Assistance for students with both job placement and federal student aid makes this already sought after school even more attractive.

The academy has been approved for Federal funding for esthetics, manicuring, and cosmetology. There is also VA funding for qualified individuals. The business has nine trained instructors who are also licensed with the State of Michigan. The Academy provides working uniforms for both instructors and students.

The business is situated in a primo 10,000 square foot space in an end cap of a recently remodeled busy strip mall on a main city street in a desirable Southeastern Michigan suburb. While the contemporary facility is large, the class sizes are small providing individual attention to the students in the facility which can accommodate 50 students overall with each student being assigned to an individual station. A student lounge is available to all students for both lunch and breaks. The facility has ample dedicated free parking adjacent to the academy.

The academy has had average annual revenues of $446,000 over the past four years. During the same period, SDE of $127,500 annually (SDE: sellers’ discretionary income – the historical, normalized cash flow available for the buyer to service bank debt - projected at $42,500 annually), service a modest seller note, and pay the buyer a salary.

Using an industry based SDE multiple of 2.90x and including $27.500 of cosmetics at cost (which the academy offers for sale at retail) results in an attractive list price for the business, inventory, and all fixed assets (primarily work stations and furniture) of $397,000. The purchase price includes ample transition training from the sellers and help coordinating all necessary State of Michigan licenses and federal financial aid requirements for the new owner.

For more information on this well-priced, niche business opportunity, please contact Ryan Johnson (rjohnson@praxisbusinessbrokers.com or 269-338-9809)

Asking: $397,000
Cash flow: $127,500
Gross: $446,000
Reference ID MG10424
Location(s): Southeast Michigan
Categories: Educational, Salons

Contact information

Ryan Johnson
rjohnson@praxisbusinessbrokers.com
269-338-9809