: Review the last three to five years of federal tax returns and compare them directly against reported internal P&L statements.

Valuations in the fitness industry typically range from of annual Seller’s Discretionary Earnings (SDE) .

: The gym has established staff and systems for retention.

How Gym Valuation Works: SDE + Equipment * The most important number in any gym valuation is seller's discretionary earnings (SDE) Two-Brain Business

: Fully removed ownership with bulletproof systems and low churn (under 4% monthly).

: Include the liquidation value of equipment (roughly 30–50% of its original cost) in your final offer calculation. 2. Financial Due Diligence