Find the best Deal for you
In order to be on the safe side and assure a fair and transparent deal, it is highly recommended to ask for a Business Assessment and Business Valuation Report regarding the sale or acquisition you would intend to do.
If you intend to sell a business, here are some main highlights:
- Your business is already well known.
- You have a list of customers and a wide mailing list that has been set up during the time.
- There are expected future income and cash flow.
- The Club contains fitness equipment and technological facilities.
- There is a certain degree of certainty regarding past and present activities.
- The club enjoys a healthy local reputation.
- How much is it worth?
If you intend to buy a business, here are some main highlights:
- Can I make a profit out of this Club?
- What about local competition?
- What is the actual state of the building and facilities?
- Is the expenses format of this Fitness Club actually real? Will it cost me more?
- How much would I have to invest in the Club beyond acquisition price?
- Can I introduce some improvements?
- How long will it take me to recover my investment?
- Is it worthwhile buying this business? And what should be the appropriate price?
The Business Assessment and Business Valuation Report includes:
- Performance Analysis regarding marketing, services, customers retention, financial input of any business units.
- Financial parameters and potential growth of income.
- Required investments
- Financial Plan and Budget for 5 years
- Value of the business according to success parameters within the Fitness Industry.
Some Important Tips:
If you wish to sell:
- Sometimes even a losing proposition could be a good opportunity to the buyer.
- Often, an old business enjoys a higher degree of business certainty than a brand new business.
- A high profit making business is worth more money than actually mentioned in its accounts. Risk Reduction has a price.
For the Buyer:
- Very often, a business is worth being bought in two situations:
- When it is mismanaged and potential remains unfulfilled
- When very profitable and perfectly managed.
* A business which is run in a satisfactory way and with an average profit margin is not a platform for significant improvement.
- Never approach a business refusing to show you all the data you need (when the business owner has something to hide, it’s a red light for the potential buyer).
- Don’t get impressed from explanations nor rely on any opinion. Check data and decide according to real facts.
- Never suppose that the seller has mismanaged the business and that you will do much better certainly and easily. It’s a first step to failure.