Valuing a Sports and Fitness Facility
Many buyers and sellers are unaware of the complexities involved in appraising sports and fitness facilities. To achieve the most accurate results, a facility must be evaluated from multiple perspectives. During a valuation, we consider everything from comparable facilities to EBITDA. There are numerous nuances tailored to the specific facility. Without considering a wide range of factors, you might end up receiving less for your facility than its true worth.
What Will Be Important for Your Buyer?
When selling a sports or fitness facility, part of its fair market value is tied to the benefits the buyer will receive. While factors like market share and profitability are obvious components of the valuation, there are also less apparent factors to consider. For instance, is there potential for the facility to expand its services? What is the competitive landscape like? How accessible is the facility to potential members?
Current Trends
Trends that impact the fitness industry should also be considered. These trends can range from technological advancements to economic or social changes. In some cases, industry trends can significantly increase a facility’s value. For example, during the recent pandemic, facilities that quickly adapted to virtual classes gained a major advantage over those that did not.
When facility owners stay informed about emerging market trends, they can develop new offerings to meet current demand. This, in turn, can boost growth and increase the facility’s valuation.
The Workforce
Recent workforce issues have significantly impacted the value of sports and fitness facilities. A strong, highly trained, and dependable workforce can increase your facility’s value. Positive customer experiences, especially from customer-facing staff, drive membership growth and instill buyer confidence in a facility with a reliable team.
Many factors will influence your buyer’s decision and should be considered in your final pricing. Savvy facility owners constantly monitor societal trends and leverage them to enhance their facility’s value. They also analyze competitors’ decisions and their effects, whether positive or negative.
Please visit our Free Opinion of Value page to learn more about how you can get a free, confidential, no-obligation valuation of your Sports or Fitness Facility.