Do the financials reconcile?
Compare reported revenue with billing-system exports, bank deposits and tax records. Understand cancellation rates, failed payments, prepaid memberships, refunds and the seller’s add-backs. Ask an accountant to review the normalization of earnings.
What are you actually acquiring?
Clarify included assets, equipment condition, outstanding financing, business names, digital accounts, intellectual property and any real estate. Separate a business purchase from an asset-only sale and understand the proposed liabilities and obligations.
Will the location and brand transfer?
Review lease duration, renewal options and assignment requirements with the appropriate professionals. For a franchise, review franchisor approval, transfer charges, required upgrades and continuing obligations. Do not assume the current agreement simply carries over.
Who will run the club after closing?
Build a staffing and owner-involvement plan. Confirm which employees and contractors may stay, how compensation works, and which responsibilities currently sit with the seller. Budget for training and a transition period.
Does the capital plan cover the whole transition?
The purchase price is one component. Consider professional fees, deposits, working capital, equipment needs, marketing and contingency funding. Funding availability is subject to lender or investor review; an introduction does not mean an approval.
Educational planning guidance. Consult qualified transaction, legal, tax and valuation professionals for your circumstances.