State of tangible assets
Posted: Wed Jan 22, 2025 3:13 am
There may be risks such as the moral obsolescence and physical wear and tear of material assets (and high costs for their renewal and replacement) and the fact that the company actually only leases these assets, but does not own them (that is, when purchasing, the new owner will not receive them, and a conflict will break out with the previous owner regarding additional payments).
Therefore, when preparing to buy a beauty salon, ask the seller for a full list of all assets used in the business. Note their condition, how worn out they are, how much it will cost to repair, upgrade, or replace them. Then cross out everything from the list that is not required to generate the expected income – you don’t need these assets.
Analysis of the financial independence ratio
Source: shutterstock.com
Last year, a private university why do vietnamese use zalo? was sold to a new owner who faced a curious problem: it turned out that almost all the furniture in the rector's office and the two main lecture halls was not the property of the educational institution - the rector had bought it with his own money and had all the documents to prove it. This was discovered after the business was purchased, and the previous owner did not fail to demand a separate payment for his property. The parties eventually managed to come to an amicable agreement (so that the new owner did not have to buy the furniture), but things could have turned out much worse.
So, we have considered all the potential vulnerabilities of a business put up for sale and the possibilities for deceiving a buyer. It is also worth remembering the need for a legal check of the beauty salon being acquired before concluding a deal.
Legal due diligence of a business is not a simple, typical task, so if you are not confident in your abilities and knowledge, it is better to entrust its implementation to professionals with a good reputation.
Read also!
"Premises for a beauty salon: choosing correctly"
Read more
Potential risks of buying a beauty salon
The market of ready-made businesses, unfortunately, does not consist only of honest and conscientious sellers. In order not to fall for the bait of scammers when buying a beauty salon, be attentive to all the nuances.
There are several types of ready-made beauty industry businesses for sale. Here is a rough classification that will help you make an initial assessment of the establishment.
Profitable salon
Its profitability is at least 35%, and the owner devotes at least four hours a day to working there. For those interested in buying beauty salons, it is a little strange that such a profitable, well-established business is being sold. When asked about the reasons for the sale, the owners usually answer that they are leaving the country and are forced to sell the company. This sounds plausible and in some cases corresponds to reality. But if we are talking about a capital beauty salon, think about it: Muscovites do not emigrate that often.
Startups
These are beauty salons that have existed for less than a year. During this time, it is impossible to gain a large client base and achieve stable revenue indicators, and whether the enterprise brings in income is a big question.
Therefore, when preparing to buy a beauty salon, ask the seller for a full list of all assets used in the business. Note their condition, how worn out they are, how much it will cost to repair, upgrade, or replace them. Then cross out everything from the list that is not required to generate the expected income – you don’t need these assets.
Analysis of the financial independence ratio
Source: shutterstock.com
Last year, a private university why do vietnamese use zalo? was sold to a new owner who faced a curious problem: it turned out that almost all the furniture in the rector's office and the two main lecture halls was not the property of the educational institution - the rector had bought it with his own money and had all the documents to prove it. This was discovered after the business was purchased, and the previous owner did not fail to demand a separate payment for his property. The parties eventually managed to come to an amicable agreement (so that the new owner did not have to buy the furniture), but things could have turned out much worse.
So, we have considered all the potential vulnerabilities of a business put up for sale and the possibilities for deceiving a buyer. It is also worth remembering the need for a legal check of the beauty salon being acquired before concluding a deal.
Legal due diligence of a business is not a simple, typical task, so if you are not confident in your abilities and knowledge, it is better to entrust its implementation to professionals with a good reputation.
Read also!
"Premises for a beauty salon: choosing correctly"
Read more
Potential risks of buying a beauty salon
The market of ready-made businesses, unfortunately, does not consist only of honest and conscientious sellers. In order not to fall for the bait of scammers when buying a beauty salon, be attentive to all the nuances.
There are several types of ready-made beauty industry businesses for sale. Here is a rough classification that will help you make an initial assessment of the establishment.
Profitable salon
Its profitability is at least 35%, and the owner devotes at least four hours a day to working there. For those interested in buying beauty salons, it is a little strange that such a profitable, well-established business is being sold. When asked about the reasons for the sale, the owners usually answer that they are leaving the country and are forced to sell the company. This sounds plausible and in some cases corresponds to reality. But if we are talking about a capital beauty salon, think about it: Muscovites do not emigrate that often.
Startups
These are beauty salons that have existed for less than a year. During this time, it is impossible to gain a large client base and achieve stable revenue indicators, and whether the enterprise brings in income is a big question.