What should I check before buying a laser hair removal clinic?
Check where new clients come from, how many courses are part-way through, whether the technicians will stay, how old each device is and what its service record shows, and how bookings rise and fall through the year. Clients in this business finish a course and leave, so the flow of new ones matters as much as the current client list.
A clinic that only does laser hair removal differs from a full med spa. Most clients come for a course of sessions, finish it and stop. The client list you are shown is therefore a snapshot of people who will mostly be gone in a year. What you are really buying is the clinic’s ability to bring in the next group, and the staff and equipment that serve them.
Where do new clients come from?
Ask the seller to break new clients down by source: online search, referrals, social media, promotions, and any partnership with a salon or gym. A clinic that depends on a single heavily discounted offer may lose its flow when the offer ends. Ask who runs the ads and the booking page, and whether those accounts transfer with the business or belong to the owner personally.
How many courses are unfinished?
Ask for a list of clients who have paid for sessions they have not yet used, and how many sessions each has left. That list tells you how much treatment time you will owe after closing. It also shows how busy the rooms will be in the months right after you take over. Our page on what happens to unfinished packages when you buy a clinic goes through it.
Will the technicians stay, and how old are the devices?
Meet the people who run the treatments. Ask how long each has been there, who trained them and whether anyone plans to leave. Then look at each device: its age, its service record, who services it and whether it is owned, leased or financed. Our page on checking lasers and devices when buying a med spa covers this in more detail.
How seasonal is the calendar?
Demand often rises ahead of warmer months and softens at other times. Ask for monthly bookings and revenue across at least a full year, so a buyer who takes over in a slow stretch is not surprised. Compare the busiest and quietest months to the staffing and lease costs that stay the same all year.
Related reading
13 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I find a med spa or laser clinic for sale?
- Expert answerHow do I check the lasers and devices when buying a med spa?
- Expert answerHow do I find a lash or brow business for sale?
- Expert answerWho owns the clients when I buy a hair salon?
- Expert answerWhat running costs should I review before buying a hair salon?
- Expert answerWhat should I check before buying a barre studio?
- Expert answerHow do I tell if a fitness studio depends on the owner teaching classes?
- Expert answerHow can I tell if a day spa is profitable before I buy it?
- Expert answerWhat does a day spa owner do day to day?
- Expert answerWhat should I do in the first months after buying a med spa?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
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