CASE STUDY | $630K EBITDA | $2.5M SALE PRICE | FRANCHISE EXIT & INDEPENDENT OPERATOR TRANSITION

VBA was appointed by the owner of a confidential large-format 24/7 gym business to manage a structured sale campaign. The business operated at scale, generated maintainable EBITDA of approximately $630,000 and presented a compelling acquisition opportunity for experienced operators and private investors seeking an established platform in the health and fitness sector.

The owner’s objective was to achieve a clean exit at a strong market price while protecting confidentiality, staff stability, member continuity and the commercial position of the business throughout the process. The campaign also required careful positioning because the sale was not a simple transfer of an existing franchise model. A central feature of the transaction was the proposed termination of the franchise agreement, allowing the purchaser to operate the gym as an independent business after completion.

Campaign Strategy

The campaign was built around the key buyer drivers for larger fitness acquisitions: earnings scale, 24/7 access, established membership base, equipment depth, operational infrastructure and the opportunity for a new owner to reposition the business outside the franchise network. Rather than relying on broad exposure alone, VBA managed enquiry quality, controlled information release and focused discussions on parties with the capability and appetite to complete a transaction of this size.

The business was brought to market in mid-October. After targeted buyer engagement, qualification, confidentiality procedures and negotiation with shortlisted parties, an offer was accepted in mid-December, approximately two months after launch.

Transaction Complexity

A key challenge was the franchise exit. The sale required the existing franchise agreement to be terminated and the business to transition to independent operation. This created a number of practical and commercial issues that needed to be resolved, including branding, systems, operational handover, purchaser expectations, continuity of trade and stakeholder coordination.

VBA’s role extended beyond sourcing a buyer. The transaction required ongoing management between the owner, purchaser, franchisor, advisors and other stakeholders to keep the deal moving and resolve issues as they arose. The process required sector knowledge, commercial judgement and practical problem-solving to protect the transaction through to completion.

Outcome

The business was successfully sold for $2,500,000. Based on maintainable EBITDA of approximately $630,000, the sale represented an EBITDA multiple of approximately 4.0x and an indicative pre-finance return on investment of approximately 25% per annum for the purchaser.

The result demonstrates the continued buyer demand for profitable, established fitness businesses with scale and strong operating foundations. It also highlights the value of a disciplined sale process where confidentiality, buyer qualification, negotiation management and complex transaction issues are handled carefully from campaign launch through to completion.