Gym owners spend years building their businesses — early mornings, long days, and countless client sessions. But when it’s finally time to sell, most realize too late that their gym isn’t worth what they thought.
In this episode, Tim and Randy sit down with Brook Hartnett, a former gym owner turned business broker at Transworld Business Advisors, to talk about what really drives the value of a fitness business. (Spoiler: it’s not the shiny equipment or even the size of your membership base.)
What matters most is how well your business runs without you. Buyers want predictable revenue, clear financials, and systems that don’t fall apart if a trainer quits. If your business depends on you writing workouts at 5 a.m. or managing everything by memory, you’re leaving money on the table — and potentially struggling to find a buyer at all.
They also break down why recurring revenue is king, how tax minimization strategies could backfire, and what separates gyms that sell for seven figures from those that can’t sell at all.
If you’ve ever thought about your exit strategy — or haven’t yet — this episode is packed with the insights you need to protect your future payday.
Tune in now.
Key Takeaways:
- Intro (00:00)
- Cash flow drives your gym’s value (05:47)
- Start with a P&L (09:17)
- Systems lower buyer risk (14:57)
- Programming tools add serious value (17:54)
- Recurring revenue is more valuable than packs (20:52)
- Owner-dependent gyms lose value (23:54)
- Expect about 10% client drop post-sale (27:17)
- Explaining valuation multiples and add-backs (31:16)
- Systems raise your sale price (34:30)
- Lack of systems could cost millions (37:41)
Additional Resources:
- A tool for deciding on new gym services – 5-Question Matrix
- Get 30 days of Semi-Private Pro on us!
- Check out our Switch to Semi-Private course
- Apply to join the Iron Circle
- Get your early bird ticket for the 2025 Growth Summit in Nashville
- Get access to the 2024 Growth Summit recordings
- Tim's new book - Built to Win by Tim Lyons
- ProFit Accelerator: Helping Training Gyms Grow to 30K/month and Beyond Facebook group
- Business Accelerator Program
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