How are gyms valued or appraised?
Like most businesses Gyms are appraised based on a multiple of the net profit to the owner with some market predictions. The determining factor is usually, what will the market pay for this business based on similar sales. Obviously with a gym it may include a lot of paid equipment , equipment under lease, or very little equipment, this can change the market value considerably. When assessing a gym to purchase you will want to have a professional evaluate the equipment to ensure you are paying a reasonable price and understand if any servicing or maintenance is due. .It is important to obtain professional advice when buying a gym as it can be a large investment and you want to be sure you know what you are agreeing to when purchasing. It is important to conduct proper due diligence.
Tags: gym
