Due Diligence Guide · Eyelash Extension Studio

Due Diligence Checklist for Buying an Eyelash Extension Studio

Protect your investment by verifying technician stability, client retention data, and recurring revenue before closing on any lash studio acquisition.

Find Eyelash Extension Studio Acquisition Targets

Acquiring an eyelash extension studio requires scrutinizing three core risk areas: owner-dependency, technician retention, and financial documentation. Studios with membership programs, booking software data, and multi-technician operations command 3.5–4.5x EBITDA multiples and offer the most defensible post-close performance.

Eyelash Extension Studio Due Diligence Phases

01

Financial Verification

Validate that reported revenue is real, recurring, and not concentrated in a single technician or owner-performed services before making any valuation decision.

Three-Year P&L and Tax Return Reviewcritical

Confirm filed tax returns match P&L statements. Identify personal expenses run through the business and document all legitimate add-backs to normalize true owner earnings.

Revenue Breakdown by Service and Techniciancritical

Export booking software reports to quantify revenue by service type and individual artist. Flag any technician generating more than 40% of total studio revenue.

Membership and Recurring Revenue Documentationimportant

Request active member count, monthly recurring revenue total, average churn rate, and membership agreement terms to assess predictable post-close income.

02

Operational and Staff Review

Evaluate technician stability, employment structures, and documented operating systems that determine whether the business can run independently of the current owner.

Technician Employment Agreements and Non-Competescritical

Review signed contracts for all active lash artists. Confirm non-solicitation clauses, booth rental versus W-2 status, and any post-sale transition commitments from key staff.

Staff Turnover History and Training Systemsimportant

Request 24-month hiring and departure records. Evaluate whether proprietary training documentation exists to onboard replacement artists without disrupting client experience.

Inventory, Supplies, and Vendor Relationshipsstandard

Audit current stock of adhesives, lash trays, and consumables. Confirm supplier relationships are transferable and not personally negotiated by the departing owner.

03

Legal and Lease Due Diligence

Confirm the physical location is secure post-close, all licenses are current and transferable, and no hidden liabilities exist in existing contracts or regulatory filings.

Lease Assignment and Renewal Termscritical

Review lease for assignment clause requiring landlord approval. Confirm minimum 3 years remain or a renewal option is documented and exercisable by an incoming buyer.

State Cosmetology Licenses and Sanitation Complianceimportant

Verify all technicians hold current state-issued esthetics or cosmetology licenses. Confirm no outstanding violations from health department or cosmetology board inspections.

Existing Contracts and Liabilitiesstandard

Review software subscriptions, equipment leases, franchise agreements if applicable, and any outstanding client refund obligations or employee disputes.

04

Phase 4: SBA Financing and Deal Structure Validation

Verify the Eyelash Extension Studio acquisition qualifies for SBA financing, the purchase price is supportable by the verified cash flow, and the deal structure protects the buyer's downside.

SBA Eligibility Confirmationcritical

Confirm the Eyelash Extension Studio meets SBA 7(a) eligibility requirements: the business is for-profit, U.S.-based, within SBA size standards, and the buyer meets personal financial requirements. Some industries have specific SBA restrictions — verify before LOI.

Normalized EBITDA vs. SBA Debt Service Coveragecritical

Model verified normalized EBITDA against projected SBA loan payments at current rates. A $1M SBA 7(a) loan at 10.5% over 10 years costs approximately $13,000/month. The Eyelash Extension Studio must generate at least 1.25x debt service coverage after a market-rate manager salary to pass underwriting.

Seller Note and Earnout Structure Reviewimportant

Confirm the seller note is properly subordinated to the SBA loan and goes on 24-month standby as required by SBA rules. If an earnout is included, define exact measurement metrics, time period, and dispute resolution process before signing the purchase agreement.

Eyelash Extension Studio-Specific Due Diligence Items

  • Export 12-month rebooking rate data from booking software (Vagaro, Booksy, or GlossGenius) to confirm client retention above 60% before valuing the business.
  • Verify the owner is not performing services — buyer should require a minimum 90-day owner transition period if the seller holds an active client book.
  • Confirm all lash adhesive and product inventory complies with current FDA cosmetic safety guidelines and that no recalled adhesive formulations are in stock.
  • Review Google and Yelp review volume and recency as a proxy for organic new client acquisition — studios with 200+ reviews and 4.7+ ratings command premium multiples.
  • Assess whether booth rental technicians have signed client non-solicitation agreements, as booth renters are not bound by standard employee non-compete clauses.
  • Verify that the purchase price divided by verified normalized EBITDA produces a multiple consistent with current market comparables for Eyelash Extension Studio transactions — overpaying by 0.5x–1.0x EBITDA is the most common buyer error in this sector.
  • Confirm the lease terms are assignable to the buyer with the landlord's written consent, and that the remaining lease term extends at least through the SBA loan term — lenders require this before funding.
  • Request copies of all material vendor contracts, supplier agreements, and service relationships — confirm which are transferable, which require novation, and which may terminate on change of ownership.

Standard Document Request List

Before signing a Letter of Intent, request these documents from the seller. Missing or incomplete items are a red flag — not a reason to proceed without them.

  • 3 years of business tax returns (Schedule C or Form 1120)
  • Last 3 years profit & loss statements (monthly detail)
  • Current balance sheet and accounts receivable aging
  • Customer/client list with revenue by account (anonymized)
  • All active contracts, subscriptions, and recurring agreements
  • Equipment list with condition and estimated replacement cost
  • Employee roster with tenure, title, and compensation
  • Any pending or threatened litigation or regulatory complaints
  • Owner compensation and discretionary expense add-backs
  • Year-to-date financials vs. prior year same period

Frequently Asked Questions

What financial records should I request when buying a lash studio?

Request three years of tax returns, monthly P&L statements, bank statements for 12 months, booking software revenue exports, and membership program documentation including active member count and monthly recurring revenue.

How do I assess technician retention risk before acquiring a lash business?

Review signed employment agreements, non-solicitation clauses, and 24-month turnover history. Meet key technicians directly and confirm they plan to stay post-close before finalizing deal terms.

Can I use an SBA loan to buy an eyelash extension studio?

Yes. Lash studios are SBA 7(a) eligible with clean financials and an asset purchase structure. Expect 10–20% equity injection, and ensure the lease has an assignment clause acceptable to the SBA lender.

What is a reasonable valuation multiple for a profitable lash studio?

Well-documented studios with membership revenue and multiple technicians trade at 3.5–4.5x EBITDA. Owner-operated studios with undocumented revenue typically fall to 2.5–3x adjusted earnings.

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