Calgary Fitness Club Wanted

 

Fitness Club or Gym Wanted

Buyer will pay my fees

Seller will pay his own lawyer and accountant fees.

Calgary Fitness Club WantedI have an avid fitness enthusiast who is financially qualified and looking first to purchase a fitness club or 24/7 gym operation.

He will also consider other industries that survive on customer contracts and customer retention.

This buyer’s criteria . . .

  • Maximum Price $400,000
  • He is looking for a business with low inventory and locked in customer contracts, such as a franchised fitness club.
  • He may look at other industries that survive on customer contracts and require skills in customer or account retention.
  • He will not consider a yoga studio or large recreation facility.
  • He would prefer Calgary but may consider an operation in a Calgary satellite community.
  • He can be a cash buyer but prefers to negotiate terms with the seller based on continuing revenues.
  • These terms could mean paying a higher price if the firm’s revenues continue to grow.
  • Operational expertise and industry knowledge must remain with the firm.

Small Business Wanted

A Calgary engineer who is also an avid fitness buff has asked me to find him a business for investment purposes.

He would prefer Calgary but will consider operations in satellite communities.

This buyer will need to retain management or need to hire new management. He will not personally work in the operation.

A currently operating franchise with a history of success would be his first choice.

He will only look at business where the operating expertise will continue through the transition of ownership. He may retain staff who can work from their own home computers.

This buyer has signed a non-disclosure agreement.

Next Steps for a potential seller . . .

I’m the guy in the middle. At this stage, neither party has to know who the other is. All the buyer needs at this point are a brief description of your business, your product line and your revenues.

If he is still interested, he’ll need to know your normalized cash flow to assess value. Your banker or accountant can do this for you (but may charge you). Or you can send me your latest tax filing or income statement with any identifying information blacked out.

I will come up with your normalized cash flow (maybe needing some clarification as I delve deeper) and my take on the market value of your firm.

You will take this number to your banker or accountant to verify it is within the range of completed deals they see pass over their desks.

If we get everybody on side on value and products, you and the seller can sit down and discuss operations and other matters until one of you walks away or the buyer is ready to propose a deal.

David Page | An Alberta Business Broker

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