Advice for Selling or Purchasing a Pilates Studio

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If you’re thinking about selling your Pilates business or buying a studio from someone else, don't miss this video! In it, Seran Glanfield of SpringThree a business development consultant for boutique fitness studios talks to Victoria Torrie-Capan, owner of Pilateson66, about how she came to buy her business. Learn about what you might expect from the process, how to decide if the situation is right for you, and get tips for dealing with the uncertainties that purchasing or selling a studio can bring.

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5 Comments

  1. N1727
    N1727 4 years ago

    Very good advice, thank you for sharing your experience.

  2. Christopher Meffie
    Christopher Meffie 4 years ago

    In my mind, the big driver of the build vs buy decision is going to be valuation of the existing business. I don’t think it was mentioned in the conversation, but failure to agree on a realistic value for the business could be the real long term problem that leads to underperformance despite heroic efforts buy the new owner.

    The buyer of a service business like this is mostly gaining a bundle of intangibles like the lease, client lists, staff. It can be very difficult to estimate future returns on those assets using historical information, and the seller might emotionally overvalue the intangible assets based on their big investments (or sunk costs).

    • Seran Glanfield Author

      Yes – absolutely. There is a huge benefit to being familiar with the studio prior to purchase as was the case for Victoria, it allowed her to be able to not only properly value the business but see where there were opportunities to grow.
      For those who are not as fortunate, having access to data beyond the standard accounting numbers is hugely helpful to potential buyers and also a tool for potential sellers to help identify value in the business – metrics such as growth in client base, teaching hours etc are all important numbers to track.

  3. oh gwang-taek 4 years ago

    Yes i will. Thanks for the tip.

  4. pilatesangel 4 years ago

    Thanks for posting this video. I was in the position to buy a studio that I had been with for nearly 10 years and after negotiations decided it was not the right time or decision for me. I love that you detailed important steps for the buyer and seller and including the emphasis to not recreate the wheel. It is natural to want to make it your own in which case starting a business from scratch would be better. Cheers to you Victoria for making tough but wise decisions and hope your business thrives for many years to come.

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