Boutique Assisted Stretching Studios – selling for $2.6M? (New Acquanon episode)

Hi folks, Will here from the Acquisitions Anonymous team, where we look at the good, the bad, and the ugly of business listings. Today's episode features Connor Groce and Heather Endresen diving into an intriguing deal: a network of three boutique assisted stretching studios in Manhattan, listed for $2.6 million. They really unpack the claims of "passive" income and the premium valuation of this trendy wellness franchise. Deal Summary: This business is a network of three boutique assisted stretching studios located in Manhattan. The asking price is $2.6 million, with reported gross revenues of $3.6 million and cash flow of $536,000. The COGS is surprisingly low, at less than 1%. But it relies on a one-to-one labor model, and there's a big question as to whether the concept can maintain its appeal over time. Another big gray area: SBA financing for buyers with significant liquidity could get complicated. What are you actually buying in this deal? Takeaways - The business claims a "passive" model, but remember, no small business is truly passive. - Low COGS is attractive, but the reliance on a one-to-one service model can be a red flag for sustainability. - Be cautious with premium valuations; the longevity of trendy concepts is often uncertain. - SBA financing can be tricky for wealthier buyers due to liquidity rules, so plan accordingly. - Understanding customer retention and marketing effectiveness is key to ensuring profitability. You can listen to the whole episode here: https://www.youtube.com/watch?v=NKc33oO0ZZU And check out the business listing directly: https://www.bizbuysell.com/business-opportunity/network-of-3-passive-boutique-wellness-centers-in-nyc/###-###-#### /