: Combine the gym's net profit with the owner’s salary and "add-backs"—personal expenses the business covers, such as health insurance or cell phone plans. The Multiple Ladder :
Before signing any binding agreements, verify the seller's claims through a deep dive into hard data. how to buy a gym
: The gym has established staff and systems for retention. : Combine the gym's net profit with the
How Gym Valuation Works: SDE + Equipment * The most important number in any gym valuation is seller's discretionary earnings (SDE) Two-Brain Business How Gym Valuation Works: SDE + Equipment *
: Audit the active, paying member count. Beware of "registered" lists that include uncancelled or non-paying members. Analyze the churn rate —the percentage of members leaving each month—to gauge long-term stability.
: Include the liquidation value of equipment (roughly 30–50% of its original cost) in your final offer calculation. 2. Financial Due Diligence
The physical and contractual health of the gym is just as critical as its bank account. How to Buy a Gym: The Complete Step-by-Step Guide