How to Sell a Tanning or Cryo Studio in California | Martin Navarro, Business Broker
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Personal Care · Seller's Guide

How to Sell a Tanning or Cryo Studio

Membership-driven wellness studios like tanning and cryotherapy sell on recurring revenue and equipment. Here is what sets the value.

What makes selling a tanning or cryotherapy studio different

Tanning and cryotherapy studios are membership and package businesses, so recurring revenue and retention drive value much like a gym. A strong base of members or package holders makes revenue predictable and raises the price.

Equipment is capital-intensive and specialized, tanning beds, cryo chambers, red-light and other modalities, so condition, remaining life, and any lease or financing on the equipment matter. Regulatory and safety compliance and your lease round out diligence.

What is a tanning or cryotherapy studio worth?

Most buyers value a tanning or cryotherapy studio on a multiple of Seller's Discretionary Earnings (SDE), your profit plus the owner's salary and the personal expenses run through the business.

These studios are usually valued at about 1.5 to 3 times SDE, with recurring memberships and newer equipment supporting the higher end. Prepaid packages are treated as a liability. I rebuild SDE with proper add-backs so your true earnings show.

A broker's job is to rebuild your SDE with the right add-backs so your true earning power, not just the tax-return bottom line, sets the price. Get a free, confidential valuation →

Selling without your staff or competitors finding out

Selling a tanning or cryotherapy studio works best when no one finds out until the right moment. Employees, competitors, customers, and suppliers learning early is the number-one fear owners have, and for good reason, it can cost you staff and revenue mid-sale. I market every business with a blind profile: a teaser that describes the opportunity, the numbers, and the area only in general terms, and never names your business. Every buyer is screened and signs a non-disclosure agreement before they learn which business is for sale. Your team keeps working, your customers keep coming, and your sale stays private until it closes.

What's your tanning or cryotherapy studio actually worth?

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Selling a tanning or cryotherapy studio, answered

Yes, significantly. Predictable monthly membership and package revenue is what buyers pay a premium for, so we document member counts, recurring revenue, and churn clearly.

Tanning beds, cryo chambers, and similar equipment are valued on type, age, condition, and remaining life, and any financing is accounted for. A documented, well-maintained equipment list supports a stronger price.

Yes. We use a blind profile and NDAs so members and staff are not alarmed, and time the transition to keep the studio running smoothly.

Martin Navarro, Business Broker

Martin Navarro, Business Broker

Martin Navarro is a California business broker, DRE #02372118, and a U.S. Marine Corps veteran. He is bilingual in English and Spanish and a member of the California Association of Business Brokers (CABB), the International Business Brokers Association (IBBA), ACG Los Angeles (Association for Corporate Growth), and the Santa Clarita Valley Chamber of Commerce. Gas stations, car washes, self-storage, and other businesses with real estate are a specialty within his full-service brokerage practice. Martin serves business owners across Los Angeles, the Inland Empire, Ventura, and Orange County, and throughout Southern California.

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