08.24.12 Tiburon, CA. Integrated Spa Consulting is pleased to announce the completion of the sale of Palo Alto-based Destino Spa. A new spa, Massage Envy will do minor renovation to the space and reopen in November of 2012. “ISC performed a valuation of the spa business, created a prospect presentation and aggressively pursued qualified buyers”, said Principal Laura Peck Fennema—a former investment banker and founder of ground-breaking aromatherapy line Essentiel Elements in the 90’s (sold in 2006 to Gilchrist and Soames). We found many unique attributes in the Destino Spa business model, and identified a buyer within four months.”
“ISC helped us get our arms around the selling process and find the right buyer,” says Destino Spa owner, Bill Cesano. “Ten years ago, Destino Spa was founded based on the vision of my late wife Christine. After her untimely death last year, I feel selling the spa is the right decision to honor her dream. Destino’s journey has come full circle.”
Fennema spoke to a large number of individual spa owners as well as spa chains in researching the best option for Destino Spa. “A significant trend is emerging in the day spa industry. Many individual spa owners have been working hard for some 20 years and are now more than ready to cash out,” says Fennema. “It is very fulfilling to help entrepreneurs get equity out of their business after they have labored very hard to build value. Most entrepreneurs need significant assistant to sell their businesses successfully. It is a complicated process.”
Fennema offers the following tips to day spa owners considering a career change:
· Develop a unique selling proposition – Develop unique services, stabilize your staff, and enter higher growth sectors like medical or nutrition services.
· Sell when you have something to sell – Prepare your company for sale. Don’t wait until your sales decline. Achieve a minimum growth rate of 10-15% - the higher the growth rate, the higher the potential valuation of your spa. Do your homework.
· Embrace current trends. Many operators are working off an old model of offering basic massage services and facials. Fennema advises clients to increasingly look for esthetic, diet, nutrition and complementary medicinal services—which are fairly price insensitive. Fennema states: “Meet the industry where it is. My motto, Live in the past and you will die in the future.”
About Integrated Spa Consulting
Integrated Spa Consulting is a business development company focusing on the spa and personal care product companies. ISC specializes in mergers and acquisitions, product development and marketing strategies. Principal Laura Peck Fennema founded ground-breaking aromatherapy line Essential Elements in the 90’s, and sold the company to Gilchrist and Soames in 2006. Prior to starting her own company, Fennema was a technology stock analyst for ten years and part of the team that took Apple Computer public. Most recently, Fennema co-founded BLOOM™ Effective Training Solutions for Salons and Spas.
For General Inquiries:
Laura Fennema, Integrated Spa Consulting
For Media Inquiries:
Nancy Griffin, Contento Marketing Group