Industry valuation
How Much Is A hair salon Worth?
Hair salons and barber shops sell for a modest multiple, because so much of the value can walk out the door with the stylists.
Averages across real reported sales of hair salon businesses, businesses sold Q3 2021 – Q2 2026. Multiples are averages; sale price is the median.
A worked example
A business is worth its earnings times a multiple. Take a hair salon with $55,000 of SDE and apply the average 2.10×:
That’s a midpoint, not a quote — an individual business sells above or below its industry average for the reasons below. Use your own SDE and see the full range in the valuation calculator.
Run your hair salon’s numbers →Why hair salon businesses sell for what they do
Client loyalty in this business usually attaches to the individual stylist, not the shop. When a buyer worries customers will follow a departing stylist, the earnings look less durable and the multiple compresses. Booth-rental models and a stable, employed team with signed agreements push the number back up.
What raises the multiple
- A booth-rental or commission model with signed stylist agreements
- Loyalty tied to the brand and location, not one chair
- Retail product revenue on top of services
- A lease in a high-foot-traffic spot
What lowers it
- Star stylists with no non-compete who could take their clients
- An owner who is also the top-billing stylist
- Walk-in dependence with no rebooking system
- Aging chairs and equipment due for replacement
Where these numbers come from
The multiples and median price above are transcribed from BizBuySell, Business Valuation Multiples by Industry, which aggregates real sold-business transactions (businesses sold Q3 2021 – Q2 2026). 80% of businesses in the source data set sold between $50,000 and $2,000,000 — the “main street” segment. SDE (Seller’s Discretionary Earnings) follows the IBBA standard: pre-tax profit plus one owner’s compensation and other add-backs.
Primary source: BizBuySell, Business Valuation Multiples by Industry. Last reviewed: July 2026.
Informational only — not a formal appraisal, a broker’s opinion of value, or professional advice. A published average is a starting point, not your business’s price.
Frequently asked questions
How much does a hair salon sell for on average?
Over the period businesses sold Q3 2021 – Q2 2026, hair salon businesses sold for a median price of $117,375 and an average of 2.10× SDE (Seller's Discretionary Earnings). Your own number depends on your earnings — for example, $55,000 of SDE at the average multiple works out to about $115,500.
Why do hair salon businesses sell for 2.10× SDE?
Client loyalty in this business usually attaches to the individual stylist, not the shop. When a buyer worries customers will follow a departing stylist, the earnings look less durable and the multiple compresses. Booth-rental models and a stable, employed team with signed agreements push the number back up.
How can I increase what my hair salon is worth?
The multiple rewards earnings a buyer believes will survive the ownership change. For hair salon businesses that means: a booth-rental or commission model with signed stylist agreements; loyalty tied to the brand and location, not one chair; retail product revenue on top of services. Each one makes the earnings look more durable to a buyer and nudges the multiple up.
Is this an official hair salon valuation?
No. This is an informational estimate built from published transaction averages, not a formal business appraisal or a broker's opinion of value. Treat it as a starting point to bring to a real conversation — run your own numbers in the calculator, then confirm with a qualified broker or appraiser.
Keep reading: What is my business actually worth? (and why every valuation disagrees)
Related tools
Estimate what your Main Street business would sell for: IBBA-method SDE from your own P&L, an industry multiple from published sold-business data, and every factor behind the number named and priced.
Open tool →Industry Multiple LookupLook up the published SDE and revenue multiples — and median sale prices — for dozens of Main Street industries, from real sold-business transaction data.
Open tool →SDE Calculator & Add-Back WorksheetWork out Seller's Discretionary Earnings line by line — owner compensation, financing and non-cash expenses, one-time items, and the normalization adjustments that cut both ways — per the IBBA's standard definition.
Open tool →