High End Barber Shop w/ Many Other Services and Products-Denver, CO
They have created a very unique, modern, popular, and repeatable business model. They have consistent long waits for all of their barber services and just added a new barber Memorial weekend which will continue to increase growth and profits. They hired me to sell this for them since she just had their 2nd child and she just doesn’t have the time to manage the books or have the ability to finish the buildout of their location and to plan and build out a 2nd and 3rd location; BUT, they don’t like the timing since all of their hard work is just starting to prove itself. They believe this is a $1M valuation company if there are 3 locations. The model is working and once they are done with the buildout out of their first shop, they believe it will be creating 800K in revenues and 150K to the bottom line. This is a must see. It is a very fun and very popular place.
They have decided to sell the company for 90,000 plus the current value of the inventory estimated to be around 12K.
The trailing 12 months from Aug 1 2018 to July 31 2019 had earnings of 43K from revenues of 484K. The revenues and earnings are growing at 25% per year with plenty of room to continue to grow. They would have put a lot more on the bottom line if they hadn’t been continuously adding inventory and expensing it as they were buying it. The sales price is only 2 times the trailing 12 months earnings.
The owners are husband and wife with her working 30 hours a week at the business. Neither have ever cut hair or provided any of their other services. The shop is in a free standing space that is beautiful on both the inside and the outside. There is a lot of walking and vehicle traffic with plenty of parking. They take both reservations and walk ins. Walk ins typically need to make a reservation and come back the next day indicating the new owner both can and should add more booths, barbers, and other services.
This business was established in late 2015 and adds new recurring customers every month. They get a lot of positive reviews as proven by their 4.9 stars on Facebook and 4.7 stars with Google. Even if you are tentative, you need to see this shop. I believe this could be either Franchised or many locations opened by the owners.