But something that has come up that is, you know, blitz someone at the last second.

How much time do we have? I've got so much trauma from this.

Yeah.

There's come up, and then obviously there's things that you could just never fathom.

I'll give you a couple real quick.

I had a deal fall apart.

It usually takes like six to nine months is what we tell people from the time that you list your business until the deal actually closes.

Let's be friendly with these people because they're going to write your mid lease like you're going to or if you want to re up and get a good deal right to prepare for that sale like you want to be on good terms with them.

And I know that for so many studio owners who are in this industry, especially in today's industry, you know, we've there are some folks who are coming into this space and have you know the the exit of of their business and selling it is not on the horizon for them not in their sort of awareness even often it's a they're in that space where they are simply building trying to build a viable business and then we have folks who have been building their businesses for years and enjoy it and they can't think about what their life might be without it and then we've got some people who've who are sort of thinking about what does it look like and how does that work? So why don't you tell us exactly what it takes and what it means to make a business saleable and to make that sale happen?

Let's start with the first group.

To everybody who's new to the industry and jumping in, welcome.

We're so glad you're here.

You know, I think it's really neat that we can speak to our personal experience in this industry as owners and teachers and all of the things that we've done that's been the most rewarding thing we've ever done in our lives.

And so...

And to everybody who's new in the industry and are new to your program and your podcast, I'm really excited that they're here.

And so I'm curious to see what, you know, hear from you, tell us, what are you seeing specifically in the Pilates space? What are you seeing first of all? And then what are you kind of seeing right now when it comes to buying and selling? Is it expansion acquisitions? What is, what is your, what are you seeing in terms of deals and flows?

Mm.

Because you cannot boil it down to a multiple.

It's a multiple of what number? How did you arrive at that number? Is it the number that the, the P&L actually gives you at the end of the P&L? Are we adding back things like meals and travel and continuing ed- education and car payments? Do you put your health insurance through? You know, what about if last year is different than the year before, how much are you averaging those, those numbers? Are you putting X weight on this past year? It really depends on if the trend's up or down, because if you're trending up, the seller is gonna put all of the weight on this past year.

If you're trending down, the buyer is gonna put all of the weight on this past year.

And so there's always some average that takes into account there.

And then there's always rent escalations, and if it's a franchise, you might have royalty fee escalations, and then those get factored in.

And then what if we need to replace the owner's salary because they're actually working in the business? And so you'd only add back so much of the owner's salary.

What should an owner start doing maybe two years before selling if they are in that position where they're currently the lead instructor, the main salesperson, the culture setter, and the person everyone goes to?

just

overshare and make this funny about me, but I've always gotten along better with older women.

I don't know what that is, but that's true in my personal life and whatever.

But as an industry, there are a lot of really successful 50-year-old women who had a corporate career and left that corporate career to start this passion business that they brought that experience and expertise to.

And my story is very similar.

My wife's story is very similar.

And so we just, we really connected with that.

How do you best stay ultra disciplined and super healthy?