Outstanding Large Gymnastics Business with Great Pricing and Terms – SOLD

Contact: Mike Greengard
Email: [email protected]
Your Reference ID: MG1081319

Description:

It has been an absolutely great 40 year run for the founder-owner seller of this spacious, gorgeous, purpose built 16,000 square foot destination gymnastics studio (and so much more…keep reading). The owner recognizes that all good things must end so he looks forward to selling the business to only its second owner and then joining his spouse in retirement.

The owner, as would be expected, loves this business and its 700 clients, and as a result will offer the business under very attractive price/terms to the right buyer who will maintain the pristine reputation of this decades old regional destination business.

Ideally located in an upscale commercial district in the most desirable city in West Michigan, the business is in a free-standing building on 4-1/2 acres – both owned by the seller. The seller will extend the current lease to meet SBA banking guidelines or offer the real estate for sale in a separate transaction.

The business has all the trappings of success including:

  • Soft floor covering the entire building
  • 2 pits under apparatus
  • New competition 40’X40’ spring floor
  • 3 tumble tracks + trampoline
  • Rock climbing wall
  • Aerial Arts
  • Classes for Ages 1 – adult
  • Year round Preschool
  • Summer Camps
  • Party and Meeting Rooms
  • Ample Office Space
  • Spacious Watch Area
  • Windows and Excellent Lighting throughout
  • Attractive Website
  • $150,000 (cost basis) of included furniture, fixtures, and equipment

The business has 5 full-time, 19 part-time employees and boasts an active leadership team. This exciting business records annual revenues of $650,000 and SDE (seller’s discretionary earnings – the normalized historic cash flow available to pay an owner-operator and service debt) of $100,000. The seller is aggressively pricing the business at $180,000, a highly favorable 1.85x SDE. In addition, the seller will carry a $90,000 seller note which when coupled with $90,000 buyer cash eliminates the need for SBA financing. Annual seller note debt service is projected at just $11,600 annually which means on a $90,000 investment an annual free cash flow (after debt service) approaching six figures could be expected for the new owner.

So, for the $180,000 purchase price, the buyer takes over a landmark business in a $1.2 million building, receives $150,000 (cost basis) of furniture, fixtures and equipment, and is the proud new owner of a business with an annual SDE of $100,000. Wow! For more information on this special business opportunity, please contact Mike Greengard (mgreengard@praxisbusinessbrokers.com).

Other Information:
Located in an upscale commercial district in a desirable city in West Michigan. The facility is a spacious, gorgeous, purpose built 16,000 sf destination gymnastics studio.

Location(s): West Michigan

Asking Price: $180,000
Cash Flow: $100,000
Gross: $650,000

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