BUSINESS SALE SUMMARY PROSPECTUS FULL SERVICE BEAUTY SALON BROOMFIELD, CO

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1 BUSINESS SALE SUMMARY PROSPECTUS FULL SERVICE BEAUTY SALON BROOMFIELD, CO Sun Blaze Loop, Suite A Broomfield, CO DISCLAIMER The information contained in this Summary Prospectus has been taken from sources believed to be reliable but Patterson & Company cannot provide any assurances as to its accuracy. Patterson & Company does not purport through the Summary Prospectus, the Prospectus or otherwise to provide prospective buyers with legal, tax, accounting or financial advice; prospective buyers should obtain all advice from their own professional advisors as they deem necessary and appropriate.

2 Patterson & Company, LLC Summary Business Prospectus-Beauty Salon, Broomfield, CO Page 1 The Business ( Business or Salon ) is a full service beauty salon operating under a chair rental business model and offering a complete line of hair services as well as manicures and spray tanning. The Salon is fully equipped to operate with a full complement of eight stylists at least five days per week. Historical Summary The Seller has operated the Salon (a Colorado Subchapter S Corporation) since 2005 and has owned the Salon since January 1, 2011 when she purchased it from her mother. Prior to the purchase the Seller worked in the Salon for about 15 years, including about five years part-time while in school. The Salon has been operating since 1979, under the same name since 1981 and at the same location since The Salon has been profitable with revenues between $70K to $80K in each of the years ended 2012, 2013 and The Seller has two young children and has decided that she cannot devote the time to the Business that is necessary to grow it to capacity. Accordingly, she has decided to sell the Business. Growth Opportunities At the revenue level experienced over the past three years, the Salon is estimated to be operating at only about 43% of capacity, assuming a 5 day/week schedule, or about 35% assuming a 6 day/week schedule. The Business is open Tuesday through Saturday, for 40 chair days/week, yet is staffed only about 17 chair days/week. Staffing the Salon to operate all 40 chairs 5 days/week will significantly increase revenues and profitability. Additional growth can be achieved by opening at least one more day/week, probably Mondays. There are also opportunities to grow the Salon by adding services such as pedicures, facials and waxing; in fact facials and waxing have been added in The Confidential Prospectus includes a projection of the Salon s operation at capacity, with only the services provided through 2014, under the current chair rental business model. The chair rental business model employed at the Salon works well for the Seller since she also serves as a stylist and with two small children, her time to actively manage the business is limited. In addition to expanding staff, schedule and service offerings, a new owner who can focus on growing the business could dramatically increase profitability by converting the Salon to a commission business model. The Confidential Prospectus includes a projection of the Salon s operation at capacity with only current services, under a commission business model. Such growth could be hampered if the Salon s key geographic market (considered to be a five mile radius from the Salon) included a high number of competitors. Fortunately, however, as the table below in the Competition section indicates this five mile radius area appears to be significantly underserved by full service beauty salons. The number of full service salons per female and total population counts in the five mile radius is about half of the same statistics in the Denver Metropolitan area. The Business has not done significant marketing to take advantage of these opportunities because the Seller has not had the time to do so nor the time to manage the resulting increased business volume. Expanding staff, schedule and services and converting to a commission model to grow the Salon will require improved marketing, will take time and will involve certain risks, but the Business is being offered at a price that reflects its value at its current level of operations, providing a new owner tremendous up-side.

3 Patterson & Company, LLC Summary Business Prospectus-Beauty Salon, Broomfield, CO Page 2 Demographics The Salon is located in Broomfield, a thriving suburb in the Denver Metropolitan area and one of the more affluent suburbs. The following table shows that two key demographic measures of wealth, namely median income and median housing unit value, are significantly higher, approximately 32% and 7%, respectively, in Sage Creek s key geographic market (5 mile radius of the shop) as compared to the broader Denver Metropolitan area. Broomfield reported a 5.8% higher population growth rate (6.41% vs 6.06%) from 2010 to 2013 as compared to Metro Denver. In addition, an analysis of 2014 US Census Bureau data by Newgeography ranked the Denver Metro area 6 th in 2014 over 2013 population growth out of the 53 largest metro areas in the US. US Census 2013 Estimates Radius From the Salon Denver 5 Miles 10 Miles Metro Male Population* 102, ,025 1,389,945 Percent of Total Population* 49.1% 49.9% 49.8% Male Median Age* Female Population* 106, ,778 1,398,669 Percent of Total Population* 50.9% 50.1% 50.2% Female Median Age* Median Household Income ($)* $81,167 $68,889 $61,589 5 Mi Rad vs 10 Mi Rad* 117.8% 5 Mi Rad vs Den Metro* 131.8% Median Value of Housing Units ($)* $260,100 $234,600 $243,250 5 Mi Rad vs 10 Mi Rad* 110.9% 5 Mi Rad vs Den Metro* 106.9% Popluation Growth 2013 vs 2010 Broomfield 6.41% Metro Denver 6.06% *Based on Census Tract Data

4 Patterson & Company, LLC Summary Business Prospectus-Beauty Salon, Broomfield, CO Page 3 Competition There are 57 full service beauty salons within Salon s key geographic market (5 mile radius). This is about half per capita as compared to the broader Denver Metropolitan area indicating that Salon s key market area is significantly underserved. The following table compares female and total 2013 population counts with full service hair salon counts. Although a review of the names and locations of these shops suggests some may be in-home businesses and some may be some larger than Salon, it seems reasonable to assume that the average sized full service hair salon has approximately eight chairs as Salon has and operates five days per week as the Salon does. Competitor Summary Count Within: Five Mile Radius of the Salon Denver Metro Competitor Shops* 57 1,478 Female Population** 106,322 1,398,669 Competitors/5000 Female Pop Total Population** 209,083 2,788,614 Competitors/5000 Total Pop *Full service hair salons based on review of Colorado DORA registrations **US Census Estimates 2013 Space Lease The Salon operates from approximately 1400 rentable square feet of leased space in a highly visible strip mall in the heart of Broomfield. The current lease expires April 30, Relations with the landlord are excellent and the landlord is willing to consider a lease extension in connection with a sale of the Business to a new owner. Following are the key terms of the existing lease: Expiration April 30, 2017 Remaining rental obligation o Minimum rents of $ /month from May 1, 2015 to April 30, 2016 $ /month from May 1, 2016 to April 30, 2017 o Prorata portion of actual real estate taxes, common area maintenance and real estate insurance currently at approximately $715.18/month The space includes eight stylist stations, four shampoo chairs/sinks, four hooded dryer chairs, restroom, washer and dryer, office and break room. Transition The Seller has a passion for cosmetology and is quite interesting in staying on as a stylist and to assist in a transition under mutually acceptable, but flexible, terms.

5 Patterson & Company, LLC Summary Business Prospectus-Beauty Salon, Broomfield, CO Page 4 Asking Price The Salon is priced at $66,000, the net present value discounted at 20% of projected shareholder distributions over the next ten years, as reflected in an As Is Operation Projection included in the Confidential Prospectus. Although the preferred form of transaction is under review, it is generally expected that the most logical form of the offered transaction will be an asset purchase, along with the assumption of certain specific liabilities, primarily the Space Lease. Conclusion Purchase of the Salon is ideal for a seasoned cosmetologist who is interested and ready to take their career to the next level in order to more fully reap the benefits of their hard work. This Business represents an exceptional opportunity because of the untapped potential to (a) grow the Business to or near capacity and (b) take advantage of the profit opportunity by converting the Business to a commission business model. * * * * * * * Interested parties should contact Tina Ezell at or tina.ezell.consulting@gmail.com. Please be prepared to provide the following information in order that we may properly qualify you: Summary of employment & education Your objectives in pursuing purchase of Salon After review of such information, which is intended to establish the bona fides and preliminary qualifications of interested parties, those parties who qualify will be requested to (a) execute a Non-Disclosure Agreement and (b) provide personal financial information in order to receive the Confidential Prospectus and further confidential information about the Salon and to establish their credit-worthiness before further discussions will be conducted. ABOUT PATTERSON & COMPANY, LLC Patterson & Company, LLC offers a broad range of real estate and related professional services to help small and medium sized business owners realize their potential, whether by establishing a new business with leased or purchased real estate, assisting with the real estate element of expanding or relocating their business, purchasing an existing business, improving the profitability and/or efficiency of their business or selling their business as they pursue retirement objectives.