My wife is a hairstylist and rents a chair at a hair salon. She’s worked there a few years and the owner has begun hinting that she wants out. Owner is near retirement age. My wife is getting a bit antsy at some of the business decisions being made, and what she would do different. She’s thinking about asking the owner for her price to buy the place out. How does that work? How does that process start (aside from bringing up the conversation).
Without the current owner collecting a % of revenue or commission from stylists, the only revenue that should consider for valuing the business is only chair rental revenue.
You mentioned this is a family business. With consideration that clients “belong” to the stylist, how many stylists are family members and who may be at risk of leaving and taking their clients?
Does the current owner lease the space or own it?
I agree that a partnership with the current owner is an awful idea. So would a partnership with practically anyone.