Forum: Ask a Studio Owner

Selling Studio in Florida
By nfdc
On Sat Jun 16, 2018 11:58 AM

Looking for feedback on selling studio by owner or through broker. Have tried 2 different brokers with no luck and had studio priced well under its professional valuation amount. Any advice? Or anyone looking to purchase a very succesful studio in North Florida?

5 Replies to Selling Studio in Florida

re: Selling Studio in Florida
By WantJazz
On Fri Jun 22, 2018 10:26 AM
It may or may not be obvious. I would start with your empoyees. I sold 2 studios to my own Instructors. I was very surprised the first time to find out that one of them is interested, and was able to pull the price. Second time I started selling with asking my Instructors, and never had to go further.

And to answer question some people may have, I had to relocate several time. Hence the need to sell.

My story
re: Selling Studio in Florida
By nfdc
On Fri Jun 22, 2018 10:37 AM
Thank you for your reply! I have also relocated...so same reason for selling. Do you mind if I ask what price ranges you sold in ? My teachers have been interested but unable to secure funding. I might be just out of their range.
re: Selling Studio in Florida
By WantJazz
On Sat Jun 23, 2018 07:26 AM
Can't disclose the exact amount. Can just say that it was between $50K-100K for the studio in a rented facility for the first school, with 200+ students. For the second school, the arrangement was somewhat different.

Dance school valuation is very different from many other businesses. The standard formulas don't work too well. A lot depends on local variables, and like you said, availability of interested buyers with access to funds.

If you don't have a flexibility on the move date, and must go, then one option is not to sell right away. You can run the school remotely, provided you have an Instructor who would be interested to accept some Lead responsibilities. This way some sort of arrangement can be made to take more time with the sale.

Another option that you can explore is to talk to long-timer parents. Many older students, especially the ones who are looking to pursue dance career, may be interested in this opportunity. You may be surprised, but many dance moms are very capable of running dance schools, and they may come up with funds as well. If their kids interested, some parents may finance their kids. This sort of gets them career/job from day 0.

Other people who may be interested, but just don't know about the opportunity, are Administrators in different local arts organizations. People who work in theatrical facilities, and so on. Again, the dance school owner doesn't have to teach dance. Expand your search to people beyond dance teachers.
re: Selling Studio in Florida
By nfdc
On Sat Jun 23, 2018 08:17 AM
Yep! Been running it remotely for 3 years thanks to great staff and studio software. Your feedback is very helpful though and I agree that the busiess valuation is not a solid thing to go by. Great to have the reminder to keep an open mind!
re: Selling Studio in Florida
By joelmorris1981
On Wed Aug 01, 2018 11:15 AM
I was wondering how much you are selling the studio for? And how long the lease has left on it?
many thanks

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