We are looking to buy a tanning salon?

we are looking to buy a tanning salon ... the previous owner is selling due to family illness and not being able to be at the business therefore he cannot expand and grow it and has decided to sell it. After doing a due diligience checklist he is not able to provide us with the information that we want. He has had this business for 9 months and he hasnt been there long enough to develop balance sheets and tax returns etc over years. we asked if we could retain the records from the previous owner and he said it was not possible due to the fact that the figures have changed and he runs the tanning salon differently from the previous owners. What do we do now ?We are looking to buy a tanning salon?
Bottom line: His inability to provide you with better information is HIS loss, not yours.





With less than one full year worth of books, you've got very little to go on. You need to ask yourself what he has that you need to buy from him:





1) Location? Is it really that good? Can you find a better one?





2) Customer base? Aren't tanning salons pretty much cash and carry? My understanding is that even ';contract'; customers are short term in nature (30 or 90 day tanning packages). Maybe I'm wrong on that. In any case, do you have an idea of what the sales trend looks like?





3) Related to #2, is he selling you a brand name that has market power? Does this guy have some unique insight that allows him to drive sales that you would be unable to replicate?





One thing to keep in mind: There is a big difference between starting from scratch and taking over an operating business. If you start cold, not only will you be building customer from nothing, you will probably be at least 60 and as much as 120 days away from your first customer due to construction, etc. That stuff takes time. If you've never done it before (in any business), don't underestimate how much time, effort and money are involved.We are looking to buy a tanning salon?
Offer to buy the equipment only and reassign the lease. Change the name. Make sure there are no leins on the equipment.
I would look into opening your own. Do not buy any blue sky from him.
don't buy it's sound like you will be closing as soon as you open.