Business Overview

This is a highly profitable, premier massage school located in the posh and upscale neighborhood of Tarrant County, TX. This facility has one-of-a-kind Massage Therapy degree program that provides students with the educational requirements to become a certified massage therapist in Texas and successful in this business anywhere in the world.

The school specializes in helping students pass MBLEx (Massage and Bodywork Licensing Examination) which is the biggest hurdle to become a Licensed Massage Therapist. Proper exam preparation is the key to success and this institute provides the most thorough and focused test prep in the massage education industry. The school offers both online and in-person classes. The TDLR (Texas Department of Licensing & Regulation) license of the school is transferable to the new owner for a nominal fee. The new owner doesn’t need to be licensed himself / herself.

This school was established in March 2020 by three partners. The business has been highly profitable from the beginning despite COVID-19 pandemic devastating the massage industry in Y2020 and Y2021. The business realized its first revenue in August 2020 during the height of pandemic and still had seller discretionary earnings of >$106K in the last 5 months of 2020. The profitability in 2021 is >$209K. The business is poised to grow even more in 2022 as COVID-19 vaccine is administered to general population and social restrictions are eased further.

The 3 owners are selling the business because they have divergent priorities and other ventures that they’d like to focus on. They would like to handover this business to a new and energetic entrepreneur who can take this business to the next level. The business is being offered at 1.4x the cash flow, so this deal won’t last long. The buyer is expected to profit handsomely from this deal.

Financial

  • Asking Price: $299,000
  • Cash Flow: $209,173
  • Gross Revenue: $425,760
  • EBITDA: N/A
  • FF&E: $70,000
  • Inventory: $1,500
  • Inventory Included: Yes
  • Established: 2020

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:5,000
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This school is housed in a spacious and well-equipped facility located at a prime area of Tarrant County, TX. The facility has a covered area of 5,000 sq. ft. and monthly rent of $5,145.84 (includes NNN). The current lease expires in August 2025 but tenant has an option to extend the lease for two more 5-year terms. A qualified buyer can transfer the lease for a nominal cost of $750.

Is Support & Training Included:

2 weeks

Purpose For Selling:

Other Interests

Pros and Cons:

Although there are other massage schools in DFW area, this school has established a great reputation and goodwill among its clients. The school has a steady stream of new students enrolling and so far about 200 students have either graduated or enrolled. This institute has a unique model which is very popular and that is evidenced by its strong financials even during the pandemic. Due to state licensing and regulatory requirements, it's not easy for new entrants to get into this business.

Opportunities and Growth:

This business is expected to grow exponentially under a unified ownership who can focus on the school. A new owner can direct sales and marketing efforts to further increase revenue. New owner can qualify this business for Title IV federal student loans, which can increase the revenue and profit margins tremendously. There is a huge potential for growth in this industry. This business can’t be outsourced overseas due to Texas licensing requirements and in-house training.

Additional Info

The venture was established in 2020, making the business 2 years old.
The transaction does include inventory valued at $1,500, which is included in the suggested price.

The business has 4 employees and resides in a building with disclosed square footage of 5,000 sq ft.
The real estate is leased by the company for $5,145.84 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell operating businesses. Nevertheless, the genuine reason and the one they say to you may be 2 completely different things. As an example, they might say "I have way too many various commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may simply be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in incomes, or a variety of various other reasons. This is why it is very important that you not rely absolutely on a vendor's word, yet instead, utilize the seller's solution together with your general due diligence. This will repaint a more reasonable picture of the business's present situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous companies finance loans in order to cover points such as supplies, payroll, accounts payable, and so on. Remember that sometimes this can suggest that earnings margins are too small. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that need to be fulfilled or may cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the location bring in brand-new consumers? Many times, companies have repeat clients, which form the core of their day-to-day profits. Particular variables such as brand-new competitors growing up around the location, road construction, and also staff turn over can affect repeat clients and also negatively influence future revenues. One important thing to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business on a regular basis, the higher the chance to build a returning consumer base. A final thought is the general area demographics. Is the business located in a largely inhabited city, or is it located on the outside border of town? How might the neighborhood average family income influence future income prospects?