How To Buy A Gym [Must See]

: Include the liquidation value of equipment (roughly 30–50% of its original cost) in your final offer calculation. 2. Financial Due Diligence

: Review the last three to five years of federal tax returns and compare them directly against reported internal P&L statements.

: 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 : how to buy a gym

How Gym Valuation Works: SDE + Equipment * The most important number in any gym valuation is seller's discretionary earnings (SDE) Two-Brain Business

: The gym has established staff and systems for retention. : Include the liquidation value of equipment (roughly

: The owner is the primary engine (coaching, sales). You are essentially "buying a job".

: 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. : Combine the gym's net profit with the

: Fully removed ownership with bulletproof systems and low churn (under 4% monthly).