Absentee Owned LA Spa-Massage Therapy business for sale

Absentee Owned, Boutique Spa & Massage Therapy

  • Engagement Number : 1906
  • Title: Absentee Owned, Boutique Spa & Massage Therapy
  • Location: Los Angeles
  • Asking Price: 395,000
  • Gross Sales: 1,674,039
  • SDE : 158,154
  • Real Estate:
  • Industry: Service

Top rated Boutique Spa established nearly 31 years provides high quality massage therapy and skin care services to LA and surrounding area patrons.  The business is absentee owned with a general manager running day to day operations and 28 top massage and skin care professionals. The business is ranked in the top three Google and Yelp search results and has more than 200 Yelp reviews with a 4.5 Star rating.  

Highlights

  • $1.6 million gross receipts (2018)
  • $158,154 Discretionary Earnings (absentee, 2018)  
  • $201,154 Discretionary Earnings (if owner-operated)
  • Asking $395,000  (Seller will consider a seller note)
  • 27 Experienced Massage Therapists plus 1 Esthetician  
  • General Manager, full time, runs day to day operations
  • Reception/Front Desk Manager & Staff
  • Bookkeeper (part time) handles invoices, bill payment, books, payroll, etc.

Daily Operations

The General Manager is responsible for all day to day operations and the front desk staff greet clients, handle retail sales, appointments, and guest services.  The owner is able to oversee the business remotely from home in about 30 minutes a day. The company has a part time bookkeeper that handles invoices, payments, books, payroll etc.  

Massage Therapists and Esthetician

The Spa has consistently attracted the top massage and skin care professionals in Southern California, who own and operate their practices at its location.The Massage Therapists and Esthetician are licensed practitioners and contract with the company which provides the treatment rooms, reception services, and separate men’s and women’s locker rooms for their clients.

Thousands of the practitioner’s clients visit the business each year and many participate in the monthly membership program which results in recurring monthly revenue.  

Marketing

All marketing is done online with the exception of an annual mailer sent to appx 5,000 people who have visited the Center relatively recently within  the last 12 or 18 months and word-of-mouth. There is no Google pay per click ads in place all search results are captured through organic searches with minimal SEO efforts.  

Facility

* Approximately 3,383 sq feet total; 2,500 sq ft reception and treatment rooms, approx 850 sq ft offices and therapist lounge.

* 9 Treatment rooms, 8 for massage, 1 for Esthetician

* 13 reserved parking spaces, free 2 hour parking

* Women’s locker room: 16 lockers with 2 showers

* Men’s locker room: 12 lockers with 2 showers

* Men’s and Women’s Steam Rooms with Eucalyptus infusers

Reason for Sale

The seller has another business that requires their full time involvement and wishes to focus on this business.

Financial Summary

 201820172016
Revenue$1,674,039$1,791,079$1,732,456
Cost of Goods Sold$15,661$64,641$24,869
Gross Margin$1,658,378$1,726,438$1,707,587
Operating Expenses$1,578,749$1,670,620$1,658,801
Net Profit (tax return)$79,629$55,818$48,786
Earnings
Owners Benefits (Add Backs)$78,525$84,728$64,415
Discretionary Earnings$158,154$140,546$113,201

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