2017 Est. $4.25MM Sales $408M EBITDA

10k Member Fitness Gym & Club in 260,000 Size Market

The Companies operate six fitness/health clubs in a single Midwestern metropolitan area where over 260,000 people reside. The Companies have total domination in their market, limiting would be competitors and national franchises to single locations and effectively thwarting the YMCA from expanding.

 

 Asking Price: Inquire
Gross Revenue: $4,250,000 
est. 2017
EBTIDA: $408,000
Cash Flow: -
Inventory: $5,000
FF&E: $260,000

Individual Membership Dues: 66%
Corporate Dues: 20%
Personal Training Fees: 11%
Enhancement Fees: 4%
Pro Shop/Snack Bar: 2%
Miscellaneous Revenues: 1%

The Companies serve 10,000 individual members who pay between $40 and $80 per month for baseline memberships. Seven inside sales personnel and one outside sales person are employed by the Companies. The inside sales people handle all call-ins, walk-ins, and prospective members who respond via the internet or social media. The outside sales person services the corporate accounts and prospects for new accounts.

Equipment & Services

The exercise, fitness and weight-training equipment is state of the art, current, paid-for, and very well maintained.   The Companies provide dynamic membership enhancements using technology including monitoring, body-indexing, secure access, listening apps, payment solutions and rewards programs. The Companies maintain a single website for all six locations, membership communications, programming and marketing. They have a very active social media presence and maintain a sizable external marketing and advertising campaign, including master branding with over ten wrapped employee vehicles.

Facilities

Two full-service clubs (43,000 sf & 18,000 sf) operate as one entity and offer a complete range of services and amenities, including basketball and racquetball courts, sauna, cycling studio, and one facility includes a four-lane swimming pool. The 43k sf club is in addition to a larger parcel with tenants and is owned by the business and the 18k sf club is owned by related party and leased to the business. Sellers prefer to sell the larger and lease the smaller to a new owner. The four express clubs (4,700 to 6,700 sf each) operate under different brand and corporate entity. They offer a range of exercise and fitness services with 24-hour access. All the express locations are leased from independent third party lessors. The first full-service location was founded in the 80’s, and the first express location opened ten years ago. The Companies continuously reinvest in facilities upgrades and enhancements, keeping members engaged and happy.

Strategically Owning the Market

The express clubs were founded to provide a mid-tier pricing option and cover the region’s demographics whether they be urban or suburban. The full-service clubs are available to the express members on a limited basis, and the express clubs are always available to the full-service members. In this fashion, the Company is very successful at retention, when other clubs lose membership when customers have lifestyle changes. Additionally, the blended brands, services and multiple locations, provides a competitive platform to attract and retain corporate memberships, many of which are with international corporations with local workforces. The exercise, fitness and weight-training equipment is state of the art, current, paid-for, and very well maintained.   The Companies provide dynamic membership enhancements using technology including monitoring, body-indexing, secure access, listening apps, payment solutions and rewards programs. The Companies maintain a single website for all six locations, membership communications, programming and marketing. They have a very active social media presence and maintain a sizable external marketing and advertising campaign, including master branding with over ten wrapped employee vehicles.

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This Merger & Acquisition Opportunity is available via Marigold Resources' Senior Affilate Partner status with Generational Equity.

Upon receipt of this completed and digitally executed NDA below, we will follow up by phone and/or e-mail to qualify providing the complete offering memorandum and schedule a time to discuss the opportunity further.