If your fitness center has been a success, you've probably had to pour most of your time, energy, and money into it. You may see your company as an extension of yourself, and it may be hard to even imagine life without it.
On the other hand, your fitness center may have been only marginally successful, and something you can't wait to get rid of. Or perhaps you entered into the fitness industry with the idea that it would be a short-term opportunity and that you'd sell whenever you got a decent offer.
Whatever your situation, selling your fitness center will be one of the most important choices you'll ever make, because unlike virtually every other business decision you've made over the years, you'll only do this once. You get a single chance to put a price tag on possibly years and years of effort — and once you sign the sales documents, it's over.
You'll come out way ahead, both financially and personally, if you make an effort to understand the steps in selling, formulate your plan carefully, and, when the time comes, take the opportunity to negotiate a price and terms that satisfy your reasons for getting out of the fitness industry.
The information below will guide you through the steps to make selling your fitness facility painless and less stressful, and at the same time help you receive top dollar.
Placing an appropriate value on your business
Your fitness facility has value to a buyer based on several measurable calculations. It is crucial to evaluate your business properly in order to increase your selling opportunities.
Presenting your business to potential buyers
Finding a qualified buyer is the first step. Qualified buyers will want information about your membership base, competition, financial history, and lease. This information must be provided in a professional and organized manner to ensure your credibility. Your financials may also need to be reconstructed to show your business in the proper light.
Confidentiality is essential when trying to sell your business. If employees know that you are selling and that changes are coming, they may seek other opportunities. Competitors may use this information against you, and members may seek cancellation and stop bringing guests.
Structuring a deal
Financing terms, personal guarantees, tax implications, leases, royalties, non-compete agreements, and more. All of these areas are crucial, and are part of the sales process.
Progressing and closing the deal
From the Letter of Intent to the Purchase Offer, these are some of the typical, but time consuming, steps that will lead you to a successful closing date.
With over forty years in the fitness industry, the team at Global Fitness Association understands there are many tasks and challenges you don’t enjoy, and selling your fitness center might be one of them.
We are available for private consultation and encourage you to give us a call today. We will be happy to discuss your situation, with no obligation on your part. If we feel that we can be of assistance to you, we will provide you with specific recommendations, including objectives, time frames, and costs.
Whether you're new to the fitness industry or a seasoned veteran, with our Executive Assistant and Consultation Services, you will have complete access to seasoned fitness professionals (40 years and counting) to discuss your special needs and/or daily challenges.
A special “Thank you“ to hundreds of fitness center owners, managers, and other fitness professionals for making Global Fitness Association their number one resource.
For more information on this subject, give us a call at 925-672-4800 and we will gladly do our best to answer your questions. You can also visit our website at www.globalfitnessassociation.com/info for more information.