Who's out there rolling up gyms??

intermediary profile

June 08, 2024

by an intermediary from University of Georgia in New York, NY, USA

Traditional gyms have sneaky high barriers to entry from finding a lease, not-cheap equipment, insurance, etc. A franchised unit of a decent brand came up for sale near me. He wants 3x SDE; he works about ~45 hours a week at the gym today. If I were to have someone in his place (~$75k?), I would be paying 4x EBITDA.

Any insights on multiples paid, how to think about the SDE vs. EBITDA when the CEO role is not technically challenging / relationship-driven (not an engineering firm), or anything else that I am missing would be much appreciated!

1
4
109
Replies
4
commentor profile
Reply by an intermediary
in Campbell, CA, USA
2x-3.5x SDE + Inventory or 3x-5x EBITDA depending on the amount and quality of the earnings and other business circumstances. The difference between SDE and EBITDA is the replacement cost of the working owner.
commentor profile
Reply by a searcher
in Manville, Lincoln, RI 02838, USA
Would be happy to chat all about this! Actively pursuing rolling up gyms myself. Feel free to DM me or email me at redacted
commentor profile
+2 more replies.
Join the discussion