Congratulations! You’ve found a buyer for your gym, and the finish line is in sight. But hold on – the escrow period is a critical time where deals can still fall apart. Here’s how to avoid common seller mistakes that can KO your gym sale:
1. Premature Takeover: It’s tempting to let the buyer “shadow” you before closing. Resist the urge! Most contracts stipulate post-sale training. A buyer overwhelmed during pre-sale training could second-guess the deal. Let them experience the “real” gym under their leadership after the sale.
2. Inventory Inertia: Don’t let excitement about closing lead to inventory shortages. Keep ordering supplies as usual. You’ll be reimbursed for inventory at closing, and empty shelves send a negative message to the buyer and customers.
3. Communication Breakdown: The broker isn’t just for the beginning. Keep them involved throughout the escrow period. They’re skilled negotiators who can help navigate any last-minute disagreements and ensure a smooth transition.
4. Disappearing Décor? The gym the buyer fell in love with needs to stay that way! Unless explicitly stated otherwise, fixtures and equipment discussed in the offer should remain. Taking out that top-of-the-line treadmill could be the deal-breaker you don’t want.
By following these tips, you can avoid costly mistakes and ensure a successful gym handover. Remember, the deal isn’t done until the ink dries. Stay focused, maintain open communication, and watch your gym business smoothly transition to a new chapter!
Bonus Tip: Consider offering the buyer a “business as usual” guarantee. This could include a commitment to maintain normal operating hours, staff levels, and inventory practices until closing. This demonstrates professionalism and builds trust with the buyer.
Have a specific Gym Sales & Acquisitions question? Message me here and let’s chat! Or call/text WhatsApp @ 214-629-7223. Contact Jim Here.
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If your fitness business is in need of a turnaround, a boost in sales, or a fresh marketing approach, we’re here to help. We offer a free initial consultation to discuss your specific situation and explore how our expertise can make a difference. Don’t hesitate to reach out to Jim Thomas at 214-629-7223 or find valuable insights on YouTube.
An Outsourced CEO, Turnaround Expert and Author, Jim Thomas is the founder and president of FMC USA Inc., a management consulting, turnaround, financing and brokerage firm specializing in the leisure services industry. With more than 25 years of experience owning, operating and managing facilities of all sizes, Thomas lectures and delivers seminars, webinars and workshops across the globe on the practical skills required to successfully overcome obscurity, improve gym sales, build teamwork and market fitness programs and products. Visit his Web site at: www.fmconsulting.net or www.youtube.com/gymconsultant.
