Sterling Birdsong, founder of Lendstra and an SBA lending expert, joins the show to break down how gym owners can buy, sell, or grow through acquisition β and how SBA financing actually works.
We get into:
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Red flags to check before buying a gym (equipment condition, staffing dependency)
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How the SBA 7(a) loan works and what it can be used for
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Why gyms are seen as higher risk by banks, and what that means for your down payment
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How to get 100% financing when expanding an existing gym business
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What to fix 1-3 years before you sell to maximize your price
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Why addbacks can hurt you more than help, and how banks actually view them
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Real valuation multiples for small gyms vs. multi-location operators
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Why scale is what actually moves your enterprise value
Whether you're looking to buy your next location or get your gym ready to sell, this episode gives you the real numbers and a straight answer on how SBA lending works.
Timestamps:
0:58 Sterling's path from banking to founding Lendstra
4:27 Why he bought into Glow Tanning
9:54 Red flags in a gym acquisition
13:49 Owner dependency: buying a business vs. buying a job
17:00 What the SBA 7(a) loan is and how it works
21:57 What gets a gym rejected for SBA funding
27:04 How to get 100% financing on an expansion
31:33 Prepping a gym to sell in 12 months vs. 3 years
38:36 Realistic valuation multiples for small gyms
41:15 Why scale is what really drives enterprise value
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