Selling a Hair Salon: Planning a Successful Succession

Selling a hair salon is a one-off event for most owners, yet preparation time is often exactly what’s missing. By 2030, more than 125,000 skilled trade businesses across Germany will be looking for a successor. Owners who plan early hold a noticeably stronger hand than those who only start shortly before retirement.

This article forms the counterpart to the article on preparing a salon takeover, which was written from the buyer’s side. This one covers the seller’s perspective: valuation, finding a successor, and the legal pitfalls.

Why selling a hair salon needs planning well in advance

Business succession is a strategic matter that should be planned years in advance, not months. Owners who only start a few months before their intended exit easily end up under time pressure and accept worse terms than necessary.

Valuing your own salon realistically

Business valuation is particularly tricky for small, owner-run salons. Under the income-based approach, an imputed owner’s salary first has to be deducted before the real earning value becomes visible. Without this step, every small salon looks more profitable on paper than it actually is.

The AWH standard: a rule of thumb for hair salons

For a first rough estimate, a simple figure has become common practice. Under the AWH standard set by the German working group of trade-sector business valuers (AWH), a purchase price can be roughly estimated at 40% of the average annual revenue over the last three years. This rule of thumb doesn’t replace a proper valuation, but it offers a first point of orientation before bringing in professional support.

Who typically takes over as successor

Four types of successor come up most often in practice: an existing employee taking over through a management buy-out, a family member, an external buyer found through a succession marketplace, or a larger salon group looking to expand. Each option comes with its own trade-offs around financing, transition time, and continuity for the existing team.

Staff during a sale: what changes for them

In a classic asset-deal sale of a salon, § 613a BGB applies. Existing employment contracts transfer automatically and unchanged to the new owner, without staff needing to agree to anything. Dismissal solely because of the business transfer is void.

Before the handover, all affected staff must be informed in writing about the timing, reason, and legal and economic consequences. They then have one month to object to the transfer. If the information given is incomplete, this deadline never starts running, which can lead to surprises even years later. Documenting this properly avoids exactly that risk. How pay and appreciation tie together more broadly is covered in the article on staff retention in the salon.

Selling a hair salon: choosing the right moment

The ideal moment to sell rarely lines up exactly with an owner’s preferred exit date. Stable revenue over recent years, a settled team, and equipment in good condition all directly affect the price a salon can achieve. Actively preparing these factors, rather than simply waiting, leads to noticeably better terms in the end.

Using the nexxt-change succession marketplace

For finding an external successor, the nationwide platform nexxt-change is a good starting point, backed among others by the Federal Ministry for Economic Affairs and Climate Action and the KfW. Listings can be posted anonymously, use is free, and regional partners such as the chamber of trade support the process.

Checklist before selling

• Owner’s salary cleanly separated out of the last three years’ results
• A first price estimate obtained via the AWH standard or a professional valuation
• The right type of successor identified and the matching channels used
• The § 613a BGB notification letter prepared well in advance
• Salon equipment and documentation in presentable condition

Selling a hair salon: avoiding common mistakes

The most common mistakes look similar across salons: starting too late, an emotional rather than realistic price expectation, and insufficient communication with the team, which leads to uncertainty and unwanted resignations. Actively avoiding these three points covers most of the work already.

Conclusion: selling a hair salon as a process, not an event

A successful sale rarely happens spontaneously; it builds up over years of deliberate preparation. Valuation, finding a successor, and legal care around staff transfer all interlock. Salons that want a structured approach to succession can request a consultation with TerraNova at any time.