Academy of Cosmetology with Excellent Growth Potential

The two partners have had a terrific 18 year run as the owner-operators of this attractive academy of cosmetology providing students with individualized, custom education in the fields of cosmetology, manicuring, esthetics and instructor training. Now looking towards retirement, current ownership looks forward to transitioning this fully accredited academy of cosmetology.

This operation not only serves to offer the education necessary for its students to pursue their future careers; they have also set up systems for federal student aid along with job placement to better assist and make these careers attainable for their students. Meeting and exceeding the necessary performance standards put forth by and recognized by the Department of Education, this groundwork has been laid for a new owner to take over operations and continue to grow this long-standing business.

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 business is housed inside a 10,000 square foot space of a recently remodeled busy strip mall. Situated on a main city street in a desirable Southeastern Michigan suburb, the location is an excellent complement to the operations. 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 ([email protected] or 269-338-9809)