Selling a Gym: Profits Possible, Valuations Complicated, Say Former Owners
Credit: Forge Valley Fitness
While other industries, such as engineering or architectural firms, have at least somewhat established business valuation norms, evaluating and selling an affiliate has proven to be the wild wild west.
- Steve Libs sold CrossFit Tribe in Los Alamitos, CA three years ago for three times annual gross revenue, for example, whereas Garth Cooke, sold Forge Valley Fitness in Vernon, B.C. in 2019 for three times his annual take home pay. A third former gym owner from New York (who wished to remain anonymous) sold his 200-member gym in 2019 for one year of business profit. And Marty Priest, who has sold five gyms through the years, said all five were valued very differently.
- Further, Wes Kimball sold CrossFit Austin in TX in 2017 and valued his business based on owner discretionary income, which included net profit, a portion of his salary and other personal benefits. Finally, Matt Michaud, the current owner of Everproven CrossFit in Dover, NH and a man who has purchased four affiliates and sold one, bought an affiliate in the suburbs of Boston for just $5,000. “She could have sold the equipment for more than that, but she was just so burned out and done,” he said.
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