HELP! Assessing the value of a PT company. - Personal Trainer Community - Forum

[Elijah Bishop]

I'm in the process of buying the Personal Training company I currently work with and I'm trying to assess the value of the buisness but I'm finding a hard time doing so. Does anyone know some good ways to figure this out?

[C Lenart]

First thing you should look for is to see if the company shows a profit. In other words, do revenues exceed expenses. Be sure to look at the profit and loss tax records from the company that were filed with the IRS. Other things to look for.

1. Are the company's revenues growing?

2. Does the company have a lot of debt?

3. Does the company have key employees that may leave after the business is sold?

4. Does the company own tangible assets like real estate or equipment that may be worth more than the business itself?

5. How long has the company been in business? How well does it perform relative to its competitors?

What are your long term goals for the company? Will you have to invest a sizeable amount of money to reach your long term goals for the company? Does the company have a stable source of income or will you have to loook for other sources of income till the business turns around? How are you setup to do this if you have to?

[Elijah Bishop]

Thanks, that helps. I had another meeting where we discussed the revenue and expenses. I will be purchasing the company by assets. We'll make a list and then I'll get an idea of what I'm buying and it's value. I can assess the values of everything but the clients. I'm getting a total number of clients this week.