Two, High Volume, Very Profitable Tanning Salons
- Asking Price
This is a once in a lifetime opportunity to own two turnkey, high end, established and super profitable tanning salons. These two impressive, high grossing, West Michigan businesses have averaged annual revenues nearly three times the industry average. Remarkably, the owner of this fantastic business spends less than 5 hours each week managing the operation while generating an impressive cash flow each year. At this time, he has decided to sell the two salons to concentrate on both his family and an unrelated fledging business.
Operating out of two attractive locations in desirable Kent County (Michigan) suburbs, the salons include 42 popular late model pieces of equipment including UV beds, bronzing beds, stand up and Versa Spa sunless spray tanning units, and the like. The facilities are super clean and of course regularly sanitized.
An experienced manager has been handling the day to day operations of both stores while the other 10 to 20 part time employees work in both salons and are well trained, loyal and dedicated. In addition to generating over $ 700,000 of gross revenues in 2021, the successful operation has no meaningful competition within a fifteen minute radius of each store.
The tanning salon industry has experienced steady growth the past five years (excluding the 2020 Covid year) and industry experts expect the growth to continue for the foreseeable future. Impressively, revenues for these two operations have rebounded to 95 % of pre Covid (2019) levels. In 2021, net Income increased a remarkable 60% over 2019 (pre Covid) results.
Let’s take a look at the very impressive EBITDA results – In 2021 the EBITDA hit a high water mark of nearly $ 260,000 and has averaged $ 220,000 for the past four years. An attractive EBITDA multiple of 3.0x results in a value price of $ 661,000 (total) for both salons.
The seller is contemplating an asset sale in which he retains cash and the very limited A/R, while retiring all liabilities. The buyer receives the highly valuable goodwill of the business and all of the fixed assets.
For more information on this outstanding business opportunity, please contact Steve Huntley at [email protected] 616 902 0898
- Reference ID
- Tanning Salons
- West Michigan