Multi-location Independent Retailer of Commercial and High End Residential Fitness Equipment and Service

Summary Information

Internal ID:
Price:
Total Sales:
EBITDA:

Contractors:
Industry:

Franchise:
Days and Hours of Operation:
Reason for Sale:
Listing Status:

FITNESS1

$4,500,000

$9,862,964
$807,840

3
Health Care and Fitness

No
Monday – Friday: 10am – 6pm; Saturday: 10am – 5pm
True Retirement
Active

Summary

Description:

This multi-location independent retailer of commercial and high-end residential fitness equipment is a full-service retailer and service provider of everything from indoor and outdoor gym design to delivery, installation, service, preventative maintenance and relocation services. Products include a wide range of traditional and connected equipment as well as flooring and the company has exclusive sales rights for many of the products it sells in their geographic markets. The business also retails products for the cue sports, and similar gaming table activities. The business offers its clients consumer financing and commercial leasing through third party lenders. The staff consists of industry veterans with over 1/3 of current employees having 10+ years of industry specific experience in sales, service, and operations.

Historical Summary:

This business has a decades long reputation for selling and servicing commercial and high-end residential fitness products. Over the years they have expanded geographically to multiple locations that now provide indoor as well as outdoor fitness solutions.

COVID Statement:

The company was initially adversely impacted by the onset of COVID-19 globally starting in the second quarter of 2020 when supply chain issues started to emerge creating inventory shortages. Public and private gyms as well as outdoor playgrounds and sports fields were forced to close and as such were not replacing, adding, servicing or maintaining their equipment at previous levels. However, the impact was minimal to this business because its commercial sales are primarily driven by vertical markets such as developers, multi-family, police, fire, community colleges, and private universities where gyms are an amenity and not dependent upon dues paying members. Concurrently, high-end consumers were having custom home gyms designed, built and installed with high end equipment sold by this business. This home gym trend continues with some industry experts predicting that as much of 30% of pre-COVID gym members will not return which further bolsters this company’s performance. As closures and mandates have abated, commercial sales have risen to record levels and in fact the company experienced a record month in March of 2022. Sellers anticipate continued stable growth in the coming years as fitness is a multi-billion dollar global industry that enhances health and wellness – a significant, established, yet still growing trend only emphasized by COVID.

Competition:

Just as any business, this business has online and brick and mortar based competitors. The business has successfully differentiated itself by providing cradle to grave sales, service and support of the most respected brands, providing competitive prices and convenient locations.

Growth and Expansion:

A new owner could choose adjacent markets to open additional brick and mortar retail locations. New product lines could be added. A more formal sales team could be established to replace current owners' roles and responsibilities. The online sales channel could also be maximized to provide incremental business.

Location

Location:
Real-Estate:
Facilities Type:

Monthly Rent:
Building Square Feet:
Facilities Description:

North Carolina
Leased
Strip Center

$42,662
22436

Retail stores are located in retail centers with high foot traffic and car counts. All locations are in good condition, have security systems, adequate parking and lighting.

Support and Training

Owner qualifications:

Buyer should posses, outsource or delegate general sales, marketing, human resources, accounting and customer engagement skills. No specific fitness industry experience is required, but a plus.

Support and Training:

Seller will provide 80 hours of transition assistance included in the purchase price

Support and Training Comments:

Additional transition support can be negotiated.

Seller Financing

Seller Financing:

Yes, Seller will provide lender required financing no more than 10%

Seller Financing Comments:

The SBA no longer requires a component of seller financing as such no seller financing is expected.

LISTING BROKER

Jeff Snell, CM&AP, M&AMI, LCBI, ABI

Jeff Snell, CM&AP, M&AMI, LCBI, ABI
REAL ESTATE TRANSACTION HANDLED BY

2009 Caminos Drive
Raleigh, NC 27607

Summary Information

Internal ID: FITNESS1
Price: $4,500,000
Total Sales: $9,862,964
EBITDA: $807,840

Contractors: 3
Industry: Health Care and Fitness

Franchise: No
Days and Hours of Operation: Monday – Friday: 10am – 6pm; Saturday: 10am – 5pm
Reason for Sale: True Retirement
Listing Status: Active

Summary

Description:

This multi-location independent retailer of commercial and high-end residential fitness equipment is a full-service retailer and service provider of everything from indoor and outdoor gym design to delivery, installation, service, preventative maintenance and relocation services. Products include a wide range of traditional and connected equipment as well as flooring and the company has exclusive sales rights for many of the products it sells in their geographic markets. The business also retails products for the cue sports, and similar gaming table activities. The business offers its clients consumer financing and commercial leasing through third party lenders. The staff consists of industry veterans with over 1/3 of current employees having 10+ years of industry specific experience in sales, service, and operations.


Historical Summary:

This business has a decades long reputation for selling and servicing commercial and high-end residential fitness products. Over the years they have expanded geographically to multiple locations that now provide indoor as well as outdoor fitness solutions.


COVID Statement:

The company was initially adversely impacted by the onset of COVID-19 globally starting in the second quarter of 2020 when supply chain issues started to emerge creating inventory shortages. Public and private gyms as well as outdoor playgrounds and sports fields were forced to close and as such were not replacing, adding, servicing or maintaining their equipment at previous levels. However, the impact was minimal to this business because its commercial sales are primarily driven by vertical markets such as developers, multi-family, police, fire, community colleges, and private universities where gyms are an amenity and not dependent upon dues paying members. Concurrently, high-end consumers were having custom home gyms designed, built and installed with high end equipment sold by this business. This home gym trend continues with some industry experts predicting that as much of 30% of pre-COVID gym members will not return which further bolsters this company’s performance. As closures and mandates have abated, commercial sales have risen to record levels and in fact the company experienced a record month in March of 2022. Sellers anticipate continued stable growth in the coming years as fitness is a multi-billion dollar global industry that enhances health and wellness – a significant, established, yet still growing trend only emphasized by COVID.


Competition:

Just as any business, this business has online and brick and mortar based competitors. The business has successfully differentiated itself by providing cradle to grave sales, service and support of the most respected brands, providing competitive prices and convenient locations.


Growth and Expansion:

A new owner could choose adjacent markets to open additional brick and mortar retail locations. New product lines could be added. A more formal sales team could be established to replace current owners' roles and responsibilities. The online sales channel could also be maximized to provide incremental business.

Location

Location: North Carolina
Real-Estate: Leased
Facilities Type: Strip Center

Monthly Rent: $42,662
Building Square Feet: 22436
Facilities Description:

Retail stores are located in retail centers with high foot traffic and car counts. All locations are in good condition, have security systems, adequate parking and lighting.

Support and Training

Owner qualifications:

Buyer should posses, outsource or delegate general sales, marketing, human resources, accounting and customer engagement skills. No specific fitness industry experience is required, but a plus.


Support and Training: Seller will provide 80 hours of transition assistance included in the purchase price
Support and Training Comments:

Additional transition support can be negotiated.

Seller Financing

Seller Financing: Yes, Seller will provide lender required financing no more than 10%
Seller Financing Comments:

The SBA no longer requires a component of seller financing as such no seller financing is expected.

LISTING BROKER

Jeff Snell, CM&AP, M&AMI, LCBI, ABI

Jeff Snell, CM&AP, M&AMI, LCBI, ABI
REAL ESTATE TRANSACTION HANDLED BY

2009 Caminos Drive
Raleigh, NC 27607