Respect, Confidence, and Accountability. These attributes are essential building blocks of good people and those with quality of character. It is also true that these are traits that need to be taught, learned, and developed. We are delighted to present a business opportunity that takes great care and pride in helping people of all ages achieve their potential not only physically but also in content of character, building respect, confidence, and accountability.

Multiple Michigan based locations (with leased real estate) work in harmony due to systems and processes established with care and oversight. Team members, coaches, and management all align on values and methodologies, thanks to a disciplined company culture that practices what it preaches. The founder/owner has invested significant time and money building the operations to create continuity and scalability both within the current operations and into expansion opportunities. 

A passerby may simply see a martial arts studio; however, with a peek behind the scenes, you will see a very intentional and deliberate operation honed over the years. Documentation, SOPs, positive company culture, and employee training all come together to make one “well-oiled machine”. Fair market wages, paid time off, sales training, and investment in professional development have led to a high rate of employee retention which translates to high customer satisfaction. This organization boasts an impressive 6% monthly attrition rate among students with great credit to the staff.

Now let’s talk numbers. This robust opportunity is priced at $2,550,000.

When taking the performance of the multiple locations in aggregate, you see historical revenues in excess of $3,000,000 with normalized EBITDA-based cash flow (EBITDA=Earnings Before Interest, Taxes, Depreciation, and Amortization) around $750,000 creating an incredible opportunity for new ownership. These revenues have shown incredible resilience through various economic cycles thanks to the subscription-based tuition model that provides predictable, recurring monthly revenue.

Under a typical SBA deal structure with 10% buyer cash, 10% seller financing, and 80% SBA financing this opportunity has a post debt service cash flow of approximately $450,000. 

The seller anticipates an asset sale in which they retain cash and the minimal A/R while retiring all liabilities. The buyer receives all equipment, systems, inventory, and goodwill of this established operation. In addition, the seller will hold a meaningful six figure seller note for a qualified buyer and is ready to provide transitional support.