Michael Scott and Mike Collette are co-owners of CrossFit Prototype in MA. They’ve been open for three years, and now they’re expanding.
Instead of opening a second location, or adding space to their original box, Michael and Mike are starting to acquire other local boxes. I’m in a privileged position of trust: box owners are more willing to talk openly when I’m in the room as a “broker”. So at the beginning of May, I flew to Boston to hang out with them for a few days, visit other boxes, eat dinner with other affiliates, and sit in on some of these negotiations.
In this short interview, Michael and Mike talk about:
- WHY they’re acquiring other gyms, instead of expanding
- WHO would make an ideal partner in an acquisition
- WHAT they look for when valuing a gym
- WHERE they’re expanding
- HOW they determine value.
You can use the Business Valuation Calculator. You can download it free here:
Michael Scott also refers to EBITDA as another valuation tool.
Whether you’re thinking about selling your gym, thinking about BUYING other gyms, or just wondering about what makes your gym valuable, this is the perfect episode for you. We don’t get drug down into the math, but we do identify some key metrics to track.
Michael and Mike are completely transparent, even when I ask hard questions. But if I missed anything and you’d like to know about it, email firstname.lastname@example.org and I’ll pass your questions along.
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In “Critical Questions”, I talk about consolidation vs. expansion, the TwoBrain Summit and the big questions I’m working on right now. Here’s “Growing Too Fast?”
Recorded on June 17, 2016.