Listing ID: 83014
Principle Business Advisors presents this profitable, independent fitness gym for sale in Baton Rouge, Louisiana. This is the second of two gyms for sale. Each gym has it’s own separate price, however; they can both be purchased together at a discount for $149,000. The gyms benefit from being the only gyms in the Baton Rouge area of their kind. The gym has a high-leveled and well-trained staff that would like to remain with the business. Additionally, the owner is agreeable to staying indefinitely for an hourly wage or a per class wage to continue teaching his classes. The owner is selling because he has another very successful business that demands more of his time. He still has a passion for teaching and therefore is willing to stay on to help a new owner.
The current owner has developed an entire branding package with complete plans to expand the gyms that he will give to the new owner. A 35-page confidential business document is available with full business details. This business has been pre-approved for bank financing by an SBA lender. A Matterport 3D virtual reality tour is also available to disclosed buyers.
Come visit the gym, experience the unique business model, and meet the owner!
For more information, please contact the listing broker, Joel Duran, at (504) 313-1038.
- Asking Price: $75,000
- Cash Flow: $45,523
- Gross Revenue: $197,258
- EBITDA: N/A
- FF&E: $35,700
- Inventory: $2,000
- Inventory Included: Yes
- Established: 2016
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
The standard training is two weeks, however; the owner will stay indefinitely to teach his specialty fitness classes for an hourly wage by the new owner.
The company was established in 2016, making the business 6 years old.
The deal shall include inventory valued at $2,000, which is included in the listing price.
The company has 12 employees and resides in a building with estimated square footage of N/A sq ft.
The real estate is leased by the company for $5,000 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals resolve to sell companies. Nevertheless, the real factor and the one they tell you might be 2 absolutely different things. As an example, they may claim "I have a lot of other commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these may simply be reasons to try to hide the reality of transforming demographics, increased competition, current decrease in incomes, or an array of various other reasons. This is why it is very crucial that you not depend totally on a seller's word, but rather, use the vendor's solution along with your general due diligence. This will repaint a more reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses take out loans in order to cover things such as inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can indicate that earnings margins are too small. Many businesses fall under 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 think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that need to be met or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in new clients? Many times, companies have repeat customers, which create the core of their day-to-day revenues. Certain variables such as new competitors growing up around the area, road building, and employee turn over can influence repeat consumers and negatively affect future profits. One vital thing to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business often, the greater the possibility to develop a returning client base. A final thought is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the local average home income effect future earnings potential?