Steps to Take Before Buying a Fitness Business

If you’re buying a sports and fitness facility, you might feel overwhelmed by all the details involved, especially if it’s your first time. This is no small task, so it’s important to dive into the process headfirst and thoroughly examine the facility.

Here are some of the most important elements to consider. While some of these aspects might not immediately come to mind, they should be high on your list of considerations.

Legal Documents

Reviewing legal documents might not seem like the most enjoyable task, but it should be one of the first things you do before buying a facility. Most worthwhile facilities will have a long list of legal documents, ranging from trademarks and copyrights to consulting agreements.

Tax Documents

Reviewing tax documents is a crucial part of the paperwork process. It’s essential to watch for forms that do not comply with IRS rules, as you don’t want to be held responsible for any errors made by the previous owner.

Business & Retirement Documents

The list of documents to review doesn’t end there. You’ll also want to examine retirement documents, including balance sheets, investment statements, and income statements. Ensure that all qualified and non-qualified retirement programs run by the facility are up to date. You may also need to check the parameters of the Department of Labor’s rules.

Work with a Business Brokerage Professional

Your business broker or M&A advisor, like Sports Club Advisors, will guide you through the due diligence process, ensuring that all aspects of the facility are thoroughly reviewed before you sign on the dotted line. It’s crucial to work with an experienced professional who is proactive in addressing all your questions to your satisfaction.

The items on your to-do list might seem overwhelming at first, but remember that putting in a lot of focus and effort now will save you from many hassles and issues later. You might even dodge a bullet by spotting a serious issue that makes you reconsider buying a facility. Always be sure to protect yourself and your best interests.