Selling or Buying a Small Business/selling my business
I have a (VERY!) small hair salon I want to sell. I can't ask much for it because of the size. Do I need a lawyer? Do I need a broker? It seems from what I've read, they only deal with much more expensive transactions.
Hello, Diane, and thank you for contacting AllExperts.
I have extensive experience selling and also owning hair salons. I do not know how sales are normally handled in Ohio, whether escrow companies are used for transactions, or if attorneys must do it, the latter being more expensive.
When you say "small", I do not know what that means in terms of revenue or profit. In general I can say that if your salon has consistent revenue, and if it is running at a profit of, let's say, over $25,000/year---even if you are the only stylist there---it should be marketable. Brokers usually charge 10% of the price versus some minimum amount. I would definitely suggest using a broker since there are many pitfalls to avoid in selling a business, plus it is good to have someone who is experienced and knows what they are doing to orchestrate the entire transaction.
If you feel this is too much for you, you might looking into advertising the salon yourself on bizbuysell.com, and on Craigs List. You need to find out first whether an escrow or attorney is normally used in Ohio by calling a broker and asking. Or, call a local escrow company (if there are escrows in Ohio)and ask them about selling a business. If there are escrows there, once you get a buyer you both can go to the escrow company, sit down with an escrow officer, and have the deal drawn up in a normal manner.
I hope this is of some help to you.