How Andrew bought an LA nail salon for less than $40K out of pocket

Happy Monday!

Today I’ve got a story about Andrew.

He was a commercial filmmaker watching AI steadily encroach on his industry, with a new wife, a baby, and a growing sense that he needed a second income stream that didn’t depend on anyone else’s algorithm.

Now, he and his wife Kelly own a nearly 20-year-old nail salon in Los Angeles and are projecting $100-150K in their pockets in year one.

Before I share Andrew’s case study, here’s another success story from the Acquisition Ace community.

Alex and Dana bought a $1.7M physical therapy business for less than $50K out of pocket just 6 months after joining Acquisition Ace.

They’re now on track to 2x their investment in year one while Alex keeps his W2 job.

👉 Want to join a community where everyone cheers you on and wants you to succeed? Book a call with our team here.

Before the deal

Andrew and Kelly had been joking for years about owning a laundromat.

When they both independently saw our content on Instagram and DM’d each other the same ad the same day, they took it as a sign and enrolled in Acquisition Ace the same day in August 2024.

They started with a shortlist of recession-resistant industries, and after making 30 to 60 calls across all of them, nail salons emerged as the clearest fit.

Finding the deal

Andrew built a relationship with a broker named Charles who specialized specifically in nail salon transactions.

The first deal Charles brought wasn't right, but Andrew kept the relationship warm.

A week before Thanksgiving, Charles called with an off-market deal: a salon owner named John, nearly 20 years in business, ready to retire.

The location was 22 minutes from Andrew’s house in Los Angeles, they met John in January, got under contract in February, and anticipated closing in April.

(Inside Acquisition Ace, members get access to a community of investors - like Darwin, a fellow member who funded $50K of Andrew’s down payment. To learn more about the Acquisition Ace community and how it can help with your first business acquisition, book a call with our team here.)

The deal breakdown

Purchase price: $700K

SDE (bank-verifiable): ~$235K (estimated total closer to $300K including cash)

Multiple: ~2.9x on verifiable income

Seller note: $50K, 1-year standby, 5% interest, 5-year term

SBA loan: ~$630K

Investor: $50K equity injection in exchange for 10% equity, repayable over 18 months at no interest

Andrew’s cash out of pocket: ~$40K

Projected year-one take-home: $100K-150K

What he’s doing now

Kelly functions as a hands-on GM, visiting the salon two to three hours every second or third day.

Andrew handles payroll every 14 days and takes on a CEO back-office role, where he’s available but not embedded.

They promoted their most senior receptionist to floor manager, who now handles day-to-day operations and staff coordination.

Now it mostly runs itself.

In February, Andrew and Kelly spent nearly the entire month in Detroit. He flew back once for payroll, and for the next cycle, he’s sending his assistant.

They’re already looking at a second salon - one where neither of them needs to be present at all.

The key lesson

“The more you put yourself out there, the more people learn your story - and they want to help. The deal worked because we took the time to drive an hour and a half to meet that broker in person.”

The off-market deal that finally worked came from a broker relationship Andrew had invested in from the very beginning - showing up in person, being transparent about their situation, and giving Charles a reason to root for them.

That relationship is what got the deal.

Ready to find and close your first acquisition?

Join the Acquisition Ace community with 2,000+ members who are learning to find, finance, and close deals just like Andrew.

👉 Book a call with our team here to see if it's a good fit.