An entrepreneur from southern Germany had the opportunity to buy a chain of hairdressing shops. He asked us to examine to what extent the asking price was appropriate and what potential there was to increase profits.
We analysed the profitability of the shops and found significant differences in turnover, costs and staff productivity. This led to a number of questions, which we discussed with the previous owner. From the information we gained an understanding of the earnings situation and the opportunities and risks for future profit development.
For the purchase price negotiation, we provided an argumentation that justified a low purchase price.
And for the buyer, we derived a potential to increase profits that he can realise if the company is managed by him.