Rolling Up an Industry with 1.5x Multiples

So good. Good on you broker. This is a good, a great, a great pitch for this business. Then there are a couple other fields here I won't. Oh no. Let's talk about. So the facilities. 8001800 square feet.

So a little bigger than yours. Nine pedicure chairs, ten manicure tables, one wax room, three massage facial room. Facial rooms, free on site parking.

Wow. It's kind of like the size that I typically look at too. So this is an interesting find. But as you can see I think one thing we want to point out is the asking price is roughly like 1.5. Like it's not.

Yeah.

The multiple slow low which is very standard for the space. Again Revenue SDE 20 27% like what they say here. My first impression though like my, my quick math.

Okay. All the number kind of makes sense. Like it's not like there's no obvious red flag. A few things that jump out immediately for me.

1800 square feet but they only have nine pedicure chairs. Would that go off on my in my head is way to waste Space you can add more chairs to utilize your space better. Interesting that they have more massage and facial room.

So what I would do if I was looking at this is then really dig into what the split between your typical nail services versus facial and massages. Right. Because they have very different profit margin for those services. I think rent is high, but this again in Virginia.

So I, I don't like compared to Texas, I think this rent's a little bit high, but I have no comparison. I don't know the Arlington market well to say whether or not that's price.

Yep.

Yeah. So like I would say just first glance, no red flag in terms of the number and what they list here.