Listing ID: 82109
This is a turnkey fitness center with the staff and equipment to run a first-class gym. This center offers a wide selection of amenities including – top-notch equipment, caring and professional staff, fitness programs, engaging classes, and innovative membership structures.
This center has a family focus with plenty of fitness equipment, onsite childcare, group fitness classes, tanning, indoor pool, sauna, steam room, and hot tub.
The purchase price includes the real estate and all the equipment.
NDA required for location disclosure. Real Estate is brokered by FNBC Iowa Realty.
- Asking Price: $2,500,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $500,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 2015
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:20,000
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The business was started in 2015, making the business 7 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell operating businesses. Nonetheless, the real reason vs the one they say to you may be 2 entirely different things. As an example, they might state "I have a lot of various obligations" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be justifications to attempt to conceal the reality of changing demographics, increased competition, current decrease in earnings, or an array of other reasons. This is why it is very important that you not rely totally on a seller's word, however instead, make use of the seller's solution in conjunction with your general due diligence. This will paint a more reasonable image of the business's existing scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Numerous businesses finance loans so as to cover points such as supplies, payroll, accounts payable, etc. Remember that occasionally this can mean that revenue margins are too small. Many businesses fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that need to be met or might result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area attract brand-new clients? Most times, businesses have repeat customers, which form the core of their everyday profits. Certain elements such as brand-new competitors sprouting up around the location, roadway construction, as well as employee turn over can affect repeat consumers and negatively impact future incomes. One crucial point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the greater the possibility to develop a returning consumer base. A final idea is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood median house income influence future earnings potential?