You want to sell your fitness center/sports school? Then it's good to know what the takeover market in terms of fitness centers/sports schools looks like. The industry is hitching a ride on the growing popularity of healthier lifestyles among consumers, but the advent of discounters is putting pressure on margins.
The number of fitness centers/sports schools declined significantly last year. The market is saturated, creating the risk of overcapacity, Rabobank mentioned back in 2019. That this would put pressure on margins and allow the big chains to take over is a trend that is now visible.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In hospitality, tourism and recreation, the sector to which fitness centers/sports schools belong, an indicative range of EBITDA multiple of 2.9 to 4.0 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
Do the calculation
Fitness centers/sports schools are generally established, but have to work hard (cooperate) to attract enough users. The increasingly conscious consumer has more to spend and wants to adopt a healthier and more active lifestyle, but is also increasingly exercising on their own, in the home environment.
In figures, the number of fitness centers/sports schools in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
To Brookz Academy
A number of trends and developments will inevitably cause changes in the coming years, but also offer fitness centers/sports schools many growth and acquisition opportunities:
Are you looking for a partner, investor or successor for your fitness center/sports school. Then post an anonymous profile of your business on Brookz and come to the attention of more than 35,000 potential buyers. Many fitness centers/sports schools have already been successfully bought and sold through Brookz.
Fitness centers compete mainly on price, especially with the rise of price-fighters in the market. Only a few fitness centers/sports schools are able to differentiate on service. However, there are opportunities for smaller boutique concepts, where personal attention, guided exercise and nutritional advice can be a differentiating factor.
Consumers demand optimal service, not only in terms of guidance and equipment, but certainly also online. Consider, for example, a website that makes signing up for group classes quick and easy or an app with home training to keep customers engaged even after they leave fitness centers/sports schools.
In the gym, people come for the quality equipment. Where previously the emphasis was on new, American and groundbreaking, today stability and reuse is a trend. According to Rabobank, fitness equipment that uses all the energy generated to light and cool the premises is in huge demand. Lower energy costs, more sustainable energy and conscious users: this is a welcome interplay.
To stay away from the cutthroat competition with the low budget centers and be sure of a future, it is important for fitness centers to become health experts. They must become the center for preventive exercise activities and seek cooperation with health care providers and sports associations. In the process, gyms are also increasingly expanding their offerings to include their own line of sportswear, sports nutrition and supplements so that they can offer a one-stop-shop concept.
