Fitness Centers Business Valuation

In 2005, Fitness Centers were extremely marketable when traditional gyms were still prevalent in the market. Long are the days of strong market multiples when 3.25 x SDE and 1.15 x Revenue were common in this industry. Fast forward 15 years; the fitness center market is saturated while customer demand has shifted to workout sessions/classes of 60 minutes or less. This has changed the industry’s business model. Now, competition is strong and P/E multiples have fallen.

Why Invest in a Fitness Centers Business Valuation?

Maybe you're just curious about how much your own Fitness Center is worth and want to know how to increase that value, or maybe you're considering purchasing a Fitness Center. Whether you're entering or exiting the fitness industry, it's important to know what you're getting into. A  Fitness Center business valuation can help you determine:

• Fair purchase price
• Negotiation tactics
• Fair listing price

Here are a few factors that could affect your Fitness Centers Business Valuation:

• Slightly higher margins compared to Full Service Restaurants with SDE / EBITDA margins at 19% / 14%.
• Franchise concepts are more marketable at 3.25x SDE.
• Multi-unit operations with store managers in place will also increase value.

For a professional Fitness Center business valuation that takes all factors into account, contact us.

Learn more about Fitness Centers Business Valuation

• How to Navigate the Business Valuation Process
• Different Types of Business Valuations

Unlock More Fitness Centers Business Valuation Insights with PeerComps

The data in your report is just the beginning. With PeerComps, you can dive deeper into this industry and access accurate, real-time data across multiple sectors. Elevate your decision-making with the powerful combination of experience and data-driven insights. GCF's Business Valuation Accreditations Your GCF Business Valuation appraisal team has one or more of the following business valuation accreditations:

• Accredited Senior Appraiser (ASA) - is recognized as having achieved the highest level of education, training, and report writing for business valuations. The ASA designation is the gold standard for a business valuation professional. (source: American Society of Appraisers)

• Certified Business Appraiser (CBA) - a very prestigious credential in the eyes of all who are familiar with it as it earned the reputation of being a difficult credential to obtain. (source: National Association of Certified Valuators and Analysts®)

• Certified Valuation Analyst (CVA)
• Accredited in Business Valuation by the American Institute of CPAs (ABV by AICPA) - a credential granted exclusively by the AICPA to qualified valuation professionals who demonstrate expertise in valuation through knowledge, skill, experience, and adherence to professional standards. (source: American Institute of CPAs)

• Accredited in Business Valuation (ABV) - credential is granted exclusively by the AICPA to CPAs and qualified valuation professionals who demonstrate considerable expertise in valuation through their knowledge, skill, experience, and adherence to professional standards. (source: American Institute of CPAs)
• Certified Public Accountant (CPA)

Over 25 years of experience and expertise in business valuations and appraisals.  An accredited appraiser receives extensive training, remains in good standing, and follows specific industry practices to determine the value of a business.

GCF's Machinery and Equipment Appraisal Accreditations

 

• Expert Equipment Certified Appraiser (EECA) - Our appraisers are recognized with a deep understanding of valuation principles and extensive experience by the Institute of Equipment Valuation.

• Certified Machinery and Equipment Appraiser (CMEA) - a CMEA professional has the expertise and certification to conduct a third-party machinery and equipment appraisal.

 

The GCF Business Valuation Process