“Is This Gym Worth Buying?”: The Monthly Revenue Numbers Buyers Want to See

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“Is This Gym Worth Buying?”: The Monthly Revenue Numbers Buyers Want to See

When it comes to selling a gym, one of the first questions a serious buyer will ask is: “What’s the monthly revenue?”

That number tells a story—of demand, retention, growth, and ultimately, value. If your revenue is too low, buyers may walk away. Too inconsistent, and they’ll question sustainability. Strong and steady? Now you’ve got leverage.

So what are the actual monthly revenue benchmarks buyers are looking for? And what can you do to meet—or exceed—them before listing your gym?

Let’s break it down.

1. Why Monthly Revenue Matters So Much

Revenue is the foundation for:

• Evaluating profitability and growth potential
• Estimating what the buyer will earn post-acquisition
• Determining financing eligibility (especially SBA loans)
• Supporting a higher multiple for your gym's valuation

 

It also helps buyers compare your gym to other available opportunities.

2. Ideal Monthly Revenue Benchmarks

While there’s no single “magic number,” here’s what most buyers look for based on gym type:

Boutique Fitness Studios (e.g., yoga, pilates, EMS, group HIIT)

• Strong: $20,000–$40,000+ per month
• Minimum viable for buyer interest: $15,000/month
• Goal: Show recurring revenue from memberships, not just class packs

 

Traditional Gyms (1,500–5,000 sq. ft.)

• Strong: $40,000–$70,000+ per month
• Minimum viable: $25,000–$30,000/month
• Buyers want to see stability and scale—often linked to membership volume

 

Large Gyms or Multi-Unit Locations

• Strong: $75,000–$150,000+ per month
• Institutional buyers or franchise investors typically expect higher revenue and EBITDA

Buyers aren’t just focused on top-line numbers—they’re evaluating revenue per square foot, revenue per member, and how consistent that income is month to month.

3. What’s More Important: Revenue or Profit?

Both matter—but predictable, diversified revenue is what gets buyers to look deeper.

Even if your profit margins are slim today, a buyer may see growth potential if:

• Membership revenue is stable and recurring
• Ancillary services (personal training, classes) have upside
• Expenses are bloated and easily optimized

 

Buyers often accept modest profit if revenue is consistent and growing—especially if the business isn’t owner-dependent.

4. What Makes Monthly Revenue Attractive to Buyers

To position your gym as a high-value opportunity, focus on these revenue qualities:

a. Recurring Over Transactional

• Membership dues > walk-in day passes or class packs
• Monthly EFTs show predictable income
• High retention and auto-renewals = lower risk

 

b. Balanced Revenue Mix

• Diversified streams like personal training, supplements, events, or apparel
• No over-reliance on one type of income (e.g., 80% from one coach)

 

c. Year-Round Consistency

• Seasonal dips are normal—but volatility signals instability
• Highlight months of consistent revenue, especially over 12–24 months

 

d. Growth Trend or Turnaround Story

• Revenue climbing steadily? Buyers see momentum.
• Flat or declining revenue? Pair it with a plan and improvements (e.g., new CRM, ads, staffing changes)

 

5. Boosting Monthly Revenue Before Listing

If you're 3–12 months out from listing your gym, focus on:

• Increasing membership base with recurring EFT
• Upselling personal training or group classes
• Running seasonal promotions to lift short-term income
• Re-engaging past members and referrals
• Cutting unnecessary comps or discounts that lower average revenue per user (ARPU)

 

Even a $5,000/month increase over a few months can significantly boost your valuation.

6. How Revenue Impacts Valuation

Buyers typically use a multiple of SDE (Seller’s Discretionary Earnings) or EBITDA to determine a purchase price. Strong monthly revenue:

• Increases confidence in earnings
• Justifies higher multiples (e.g., 3x instead of 2x)
• Attracts more qualified buyers, including those seeking SBA financing

 

In short, higher and more consistent revenue = more offers and stronger terms.

Conclusion: Your Monthly Revenue Is Your Gym’s First Impression

When a buyer looks at your gym, monthly revenue is the headline—and you want it to read well. It’s not just about the number itself, but what it tells a buyer about stability, scalability, and future earnings.

By building consistent, recurring revenue and tracking the right metrics, you’ll not only attract better buyers—but command a stronger price when it’s time to exit.