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Hair/Beauty Salon Business Valuation Formulas:

Valuing Hair Salons: This is a general business valuation formula or pricing method for small hair and beauty salon businesses based on a percentage of annual gross revenues that can be used to help determine an approximate value and asking price to market an existing salon  business for sale.

Hair/Beauty Salons Valuation Formula: Approximately 30% of annual gross sales + inventory.

Broker Comments: In my opinion the biggest challenges in supporting higher business valuations for hair and beauty salons is that its relatively easy and inexpensive to open a salon, (low barrier to entry) many markets are over saturated, there are not a lot of hard assets, and many customers tend to be loyal to the stylists not the business.

Note: Always contact and consult with a Business Broker, Business Appraiser, or financial adviser who is familiar with the dynamics of your local market and economy because conditions for establishing an asking price for any business can vary based on a wide variety of factors and local conditions.