Case Study · Buy-Side
Franchise Acquisition: 7-Location Fitness Portfolio with ~400% Year 1 ROIC
A first-time business owner and ex-NFL player wanted to buy a business that would allow him to spend more time with his family. LCG sourced an off-market opportunity to acquire 7 franchise fitness locations in Arizona. The deal was structured with a $120K buyer down payment, $100K seller note, and SBA financing for the remaining 80% — delivering a DSCR well over 2.5x and an approximately 400% return on invested capital in Year 1.
The Buyer
From the NFL to Business Ownership
The buyer was a first-time business owner — an ex-NFL player and college coach who wanted to buy a business that would allow him to spend more time with his two children. He needed a fully absentee opportunity with proven management already in place.
The Opportunity
Off-Market Sourcing for a Multi-Location Portfolio
LCG sourced this deal off-market on behalf of the buyer partner. The opportunity was a 7-location fitness franchise portfolio in Arizona producing $450,000 in annual cash flow. All locations had general managers in place, making it a true absentee-ownership opportunity. The deal was structured with a $120,000 buyer down payment, a $100,000 seller note, and SBA financing for the remaining 80%.
The Outcome
Exceptional Returns and a Government Shutdown Hurdle
The one obstacle during closing was a government shutdown, which required waiting for the government to reopen to issue an SBA loan number. Despite this delay, the deal closed successfully. The DSCR on this deal is well over 2.5x, and the buyer is projected to receive approximately 400% return on invested capital in Year 1 — all while operating the business fully absentee.
By the Numbers
Deal outcomes that speak for themselves.
From a stalled search to a closed deal and a growing business — in less time than most searchers spend reviewing CIMs.
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