What should I check before buying a wig store?
Before buying a wig store, look at the stock itself: human-hair and synthetic pieces, styled display units and unsold custom work. Then look at the clients: who sends them, how often they return, and how much of the fitting depends on the current owner. Ask for records on each, and ask your lawyer to review how orders in progress will transfer.
A wig store looks like retail, but much of it is a service. Clients come to be fitted, advised and sometimes reassured, and many return for years. That changes what you inspect. Shelves and fixtures matter less than the stock behind them, the orders still in production and the person who does the fitting. Start with the records, then go and see the store on a normal working day.
Stock: what is on the shelves and what is worn
Human-hair and synthetic pieces age differently, and styled display pieces lose their shape long before they stop looking presentable. Ask for a stock list that separates each type, and compare it with what you can see. Ask how long pieces have been on hand and whether some were bought for a client who never collected. Ask which items the seller would mark down, and which the store would realistically never sell.
Custom orders and the people waiting on them
Made-to-measure pieces are often paid for in part before they arrive. Ask for a list of orders in production, what each client has paid, who the supplier is and when delivery is expected. Ask your lawyer whether a buyer who takes over the store takes over the promise to finish those orders. Your lawyer can tell you how they should be handled in the agreement, and your accountant can explain how the deposits are recorded.
Clients, referrals and the fitter
Many clients arrive after medical hair loss, so ask where they come from. Some come from walk-by traffic, some from referrals by clinics or stylists, some from word of mouth. A store that leans on one referral source is exposed if that relationship ends. Ask also how much of the fitting the owner does personally, and whether the staff can do it without them.
The space itself
Private fitting rooms are part of what clients pay for. Visit them, and ask about the lease and whether the landlord has to agree to a change of owner. See what to check before buying a beauty supply store for the general retail checks that also apply here.
Related reading
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Selling
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 CanadaGovernmentWhat is inventory
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