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Purchase of a Fitness Center
Posted by Guy from Calgary, AB, CA on March 31, 2009

In this economic environment, does it make sense to purchase a fitness center in the states ?

There is no "cast in cement"" answer to that question. Depends on whether the business is profitable or not, what kind of condition the physical plant is in, the condition/age of equipment, amenities, etc. Also what the net asset value of the company is, what EBITDA it develops, and what the competition looks like in the particular demographic area. I believe there will soon emerge a "buyer's market" for thousands of health clubs, due to the economy nationally and regionally, and the fact that our U.S. health club industry is overbuilt at this point and now in the beginnings of a severe consolidation. That said, there WILL be great opportunities soon...IF you've got the cash, the guts and the vision.