After spending many hours and years in this challenging industry, it might be time to sell. Only you know the answer to this question.
Jim Rohn, a motivational speaker, once said, “You cannot change your destination overnight, but you can change your direction overnight.”
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 out whenever you got a
decent offer.
Whatever your situation, selling your fitness center will be one of the most
important things you'll ever do, 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, which will make selling your fitness facility painless, less stressful and at the same time receive top dollar:
#1 - Most Important - Maintain confidentiality - Confidentiality is essential when trying to sell your business. If employees know that you are selling and changes are coming, they may seek other opportunities. Competitors may use this information against you, and members may seek cancellation and stop bringing guests.#2 - Placing an appropriate value on your business - Your fitness facility has value to a buyer based on several measurable calculations. Thus it is crucial to evaluate your business properly in order to increase your selling opportunities.
#3 - 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.
#4 - Structuring a deal - From financing terms, personal guarantees, tax implications, leases, royalties, non-compete agreements, and more. All of these areas are very important, and are part of the sales process.
#5 - Progressing and closing the deal - From the Letter to Intent, to the Purchase Offer, these are some of the typical, but time consuming, steps that will lead you to a successful closing date.
Global Fitness Association, created by fitness professionals with over 40 years in the fitness industry, has emerged as the number one resource in the industry. Can you really learn something from a bunch of fitness industry veterans? We think so. Give us a call today at 925-672-4800.
