ABOUT THE AUTHOR: DAVE KIRBY

Since entering the salon industry in 1983, Dave has worn the hats of stylist, manager, business owner, educator and salon management consultant. He was an educator and consultant with Michael Cole's Salon Development Corporation for five years.

Dave joined KRS Consulting Group in 2002 and was named the company's "Consultant of the Year" in 2003. Prior to the KRS and SSBC merger, Dave served as President and CEO of KRS Consulting Group.

Dave is a stockholder, board member and the Managing Director of Summit Salon Business Center's Western Division.

To Merge or Not To Merge?



By Dave Kirby

In the current economic climate, we have been receiving more inquiries from salon owners who are considering a merge with another salon as a way of strengthening their businesses.

Merging two salons can be a great way to increase income; add power to your recruitment efforts; increase your profile in manufacturer’s reward programs and distributor support.

However, there are pitfalls to be aware of. Each merger is different and requires careful consideration.

Here are a few crucial aspects of orchestrating a merger of two companies:

1. Financial considerations - what are each of the companies worth
individually? What would the new company be worth?

2. Roles & responsibilities - what skills/talents will each of the
partners bring to the table in the day to day operations of the salon?
Do both parties see the value and a need for those skills/talents?

3. Business philosophies/practices and target market - what are the philosophies and practices of each of the two companies and are they similar? Do the salons currently go for the same segment of the marketplace? Will the merger simply gather more market share in the current target market, or is the merger designed to broaden the salon’s appeal in the market place?

4. Culture – what is the culture of the two salons? Are they compatible? The salon culture is the number one failing point of merged partnerships. It is easy to make *any* merger look attractive on paper (and given the current economic situation, this is more true than ever). It's a much different thing to get two separate teams operating as one. Both salons already have their own histories and their own set of rules (both formal and informal).

In the end, what many people hope will be a merger can oftentimes
simply become "one salon absorbing the staff of another" due to lease,
debt and staffing issues. In either case, the new salon must make a special effort to consciously create and nourish a brand new culture and identity.

If you are considering a merge with another salon and need help with specifics, don’t hesitate to contact us at info@summitsalon.com






Ennoview Integrity Payment Systems
Summit Salon Business Center Frances Roberts Salon & Spa Insurance
Solutions for Salons Beauty On Hold
Crystal Focus Salon Development Corporation
Salon Consultants International Redken 5th Avenue NYC
Matrix

Effective Coaching Sessions