Fitness Club Business Broker
Business Buying And Selling Made Easy

Services - Valuation

Sellers
  • Full Business Brokerage Services
  • Limited Broker or Listing Services
  • Valuation or Broker's Opinion of Value
Buyers
  • Customized Buyer Search
  • Intermediary
  • Buyer Agent
Sellers - The 10 Step Process:
1.  We talk on the phone about your current situation and desire to sell. 
2.  You complete a Club Profile questionnaire and send me your financials and other relevant info to conduct a valuation.
3.   I do a valuation or "Broker's Opinion of Value" and determine a realistic selling price range.
4.   We agree on a listing price and execute a Listing Agreement.
5.   I write a business profile or a "confidential business review"  to present to qualified buyer prospects.
6.   I work on getting your business SBA pre-approved for financing.
7.   I list, post and market your business in a blind ad (to maintain confidentiality) on all of the major websites and buyer databases as well as my website and Club Business International magazine.
8.    I reply to buyer inquiries and have them complete a profile and Confidentiality Agreement.
9.   Together, we respond and answer any questions a buyer prospect has and schedule personal tours/meetings with buyers.
10.  I help with negotiations between the buyer & seller.  I help the buyer obtain financing, write a purchase agreement and work through contingencies.  I help coordinate the closing making sure a UCC search and all documents are executed so there are no last minute surprises.   We have a smooth closing.  Congratulations, you have successfully sold your business.

How To Valuate A Business:

Most businesses including health clubs are priced and sold based on a multiple of your "Net Owner Benefit" or "Seller's Discretionary Earnings".  The formula is below: 

Net Owner Benefit Selling Price
0 - $50,000 1 time multiple
$50,000 - $100,000 2 time multiple
$100,000 - $250,000 3 time multiple
$250,000 - $500,000 3-5 time multiple
$500,000 - up 5 time multiple

How to arrive at your Net Owner Benefit or Seller's Discretionary Earnings:
EBITDA + Owner Benefit = Net Owner Benefit

E arnings of Biz
B efore Expensing
I  Interest, Income
T axes
D epreciation Expense
A  mortization Expense

Take your profit shown on your tax return and add back interest, depreciation, amortization, owner salary, owner perks & expenses ran through the business that a new owner would not incur, plus any non-recurring expenses = Net Owner Benefit.



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