Would you buy a business that started making a profit 7 months ago?
Small fitness studio focusing on personal training style workouts. Selling annual memberships. The business has been around for about 2.5 years, basically breaking even in 2025, and since the beginning of the year they have been doing well and are turning a profit thanks to a new lead generation service that they started using. Now they are selling the business because the owner is moving back to their home country. They priced the business basically at a 2.5x multiple of the projected annual profit, based on an average of their last 7 months. Thoughts?
Edit: they priced the biz at 2.5x the projected annual profit, not revenue.
u/Runningaround___ — 4 days ago