Exit Planning Tips
Selling a Health Club or Gym
It's a misconception that no one is buying health club or gyms these days. Savvy entrepreneurs see health club or gym opportunities as a path to short-term profits and long-term growth. There aren't any guarantees, but if you adhere to fundamental business sale concepts, you can likely get a good price for your business.
In a down economy, many health club or gym sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of health club or gyms that are actually for sale.
Yet everyday, hundreds of listed health club or gyms manage to pique the interest of qualified buyers. They do it by paying attention to the details that other business sellers overlook.
Family Issues
Many sellers embarked on their health club or gym sale without adequately considering the impact it will have on their families. In many cases, we find that even though business owners are equipped to handle their ownership exit, their family members are having a hard time letting go of the business, especially if family life has revolved around the demands of the health club or gym. The sale of the business will likely result in new family dynamics. Subsequently, selling a health club or gym has to include ample communication and shared decision-making.
Sweetening the Deal
Like it or not, prospective buyers are going to ask you to make certain concessions in the sale of your health club or gym. Concessions can consist of non-cash as well as cash incentives. In fact, many concessions have little or no financial impact, but go a long way toward making the deal more palatable to young entrepreneurs. In the current economy, seller financing is becoming common in health club or gym sales. If the prospect is inexperienced or lacks credentials in the industry, you can also offer to stay with the business for a specified period of time to help the new owner get on his feet and introduce him to your network of industry contacts.
Handling Unexpected Outcomes
Every business seller dreams of a fast sale and a fat payday. However, no one told the marketplace about your expectations. The outcome of your sale will be determined by market forces - not by your personal circumstances or desires. Despite your best efforts, you need to prepare yourself for the possibility of receiving less than you expected from the sale of your health club or gym. If buyers don't seem to be willing to meet your expectations, consult with your broker to modify your strategy and market approach.
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