What a salon sells for, and what a broker would take
BizBuySell's closed-sale data puts hair salons at 1.5 to 2.5 times the owner's true annual earnings (seller's discretionary earnings, or SDE), or 0.35 to 0.65 times yearly revenue. A salon where the owner really takes home $60,000 a year usually prices between $90,000 and $150,000.
Morgan & Westfield, a business brokerage, says most brokers charge a flat 8% to 12% commission on businesses under $1 million, with a minimum fee of $10,000 to $25,000 regardless of the sale price. On a salon-sized sale, the minimum is what you pay.
Broker commission on typical salon sale prices, at 8% to 12% with the lowest common minimum fee ($10,000).| Sale price | Broker fee | Share of your sale |
|---|
| $90,000 | $10,000 to $10,800 | 11.1% to 12% |
| $150,000 | $12,000 to $18,000 | 8% to 12% |
| $250,000 | $20,000 to $30,000 | 8% to 12% |
Source: Morgan & Westfield (advisory guidance from a brokerage, not a dataset). A $25,000 minimum would make each small-sale fee higher.
What buyers of a salon look at
- Clients who rebook with the salon, not only with you.
- Stylists who plan to stay after the sale, and signed booth-rent agreements if you rent chairs.
- A lease that can be assigned to the buyer, with years left on it.
- Three years of business tax returns that support the price.
How to sell your salon yourself
- Find your true earnings. Start from your tax return profit, then add back your own pay, and the personal and one-time costs the salon pays for (car, phone, health plan, a one-off remodel). That total is your SDE, the number buyers price from.
- Set a price you can prove. Multiply your SDE by 1.5 to 2.5. Land higher in the range if the salon runs without you, lower if the clients follow you personally. Back it with three years of returns.
- Prepare the documents. Tax returns, a profit and loss statement, the lease, payroll or booth-rent records, an equipment list (chairs, stations, dryers, wash units), and a confidentiality agreement (NDA) for buyers.
- Market it without naming it. List the salon blind: the area, rounded numbers, and what is included, but not the name. Staff, clients, and the landlord should not hear about the sale before a deal is real.
- Screen buyers and share details under NDA. Ask about experience, timeline, and how they plan to pay. Share the name and full financials only after an NDA is signed. Your own stylists are often the best buyers.
- Agree terms, including how the buyer pays. Many buyers need seller financing or a bank loan. Agree the price, down payment, and payment schedule in writing.
- Close with an attorney. A licensed attorney drafts the purchase agreement and closing documents. Check whether your state requires the buyer to hold their own salon license; in many states it does not transfer with the sale.
Sources
- BizBuySell, Business Valuation Multiples by IndustryBusinesses sold Q3 2021 through Q2 2026, updated biannually · Aggregated closed sales reported to BizBuySell over a trailing five-year periodFigures are averages of closed sales reported to one marketplace, US only. A marketplace sees the deals listed on it, not every sale in the country.
- Morgan & Westfield, Business Broker and M&A Advisor Fees: A Comprehensive GuideChecked October 2026 (page undated) · None. This is a brokerage firm describing market practice, not a dataset.States that most brokers charge a flat 8% to 12% commission on businesses under $1 million and a minimum fee of $10,000 to $25,000 regardless of sale price. Commissions are negotiated privately and individual agreements vary.
YourBizWorth is not a broker, appraiser, or law firm. This guide is general information, not legal, tax, or lending advice.
Questions people ask
Do I need a broker to sell a hair salon?
No. Nothing in a salon sale requires a broker. The buyer needs proof of the numbers, the buyer's lender needs tax returns, and the closing needs an attorney. A broker coordinates those things for a commission; you can do it yourself and keep the commission.
Can I sell my salon to one of my stylists?
Yes, and it is common. A stylist already knows the clients and the team. Many cannot pay the full price up front, which is where seller financing helps: they pay part at closing and the rest monthly from what the salon earns.
Will my clients leave when I sell?
Some may, which is why buyers look hard at whether clients rebook with the salon or only with you. Introducing the new owner before you step away, and staying on for a short transition, helps keep the book together.
Does my salon license transfer to the buyer?
Often not. In many states, including Pennsylvania, the buyer applies for their own salon license. Plan the timing so the shop never has to close.
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