CATEGORIES: Business, Franchising

The Multiples Approach: Navigating Business Valuation and Acquisition with Luke Andrus

Are you a business owner looking to maximize the value of your business? Do you want to understand how cash flow is critical in business valuation?

In this episode of the Franchise Secrets Podcast, host Erik Van Horn and his guest, Luke Andrus, share valuable insights on the multiples approach to business valuation and helpful tips for navigating the complexities of buying or selling a business.

Luke is the founder and CEO of Blue Star Investments, a private equity firm based in the United States that focuses on investing in and growing small to mid-sized companies. He also co-owns multiple Anytime Fitness franchises in the United States, which makes him understand firsthand what makes a business valuable to buyers.

Whether you're a business owner looking to sell or a buyer interested in acquiring a business, this episode is packed with valuable insights you will want to take advantage of!


“No matter how good you are, it's still a gamble. Maybe the location's terrible, you know. I'd rather have a bad product in a great location than a great product in a bad location.” - Luke Andrus


In This Episode:

- A brief background on Luke, how he became a co-owner of multiple Anytime Fitness franchises, the value he brought to the business, and what sets him apart from other franchisees

- The three significant KPIs to monitor in the gym industry and how to monitor reviews

- Why it's crucial to teach employees how to solve problems and understand P&L statements

- Understanding company valuation using the multiples approach

- How do you avoid the usual mistakes sellers make?

- Why you should avoid buying into companies where the owner is too involved

- How to negotiate the terms of the sale and the benefits to seller and buyer for certain sale agreements

- When should you inform your employees that a new owner is taking over the company? 

- Buying healthy assets vs. distressed assets 

And more!



- Learn more about Erik’s franchisee mastermind here - www.franchisetribe.com 

- Learn more about Erik’s franchisor mastermind here - www.franchisortribe.com 

- Learn more about Erik’s passive investing mastermind here - www.tribeofinvestors.com 

- Want to buy a franchise? Connect with Erik here - https://forms.gle/n4JedEuU5p7asE617 

- Want to franchise your business? Connect with Erik here - https://forms.gle/n4JedEuU5p7asE617 

- The Accidental CEO by Thomas Voccola - https://www.amazon.com/Accidental-CEO-Leaders-Journey-Purpose/dp/1411688570

- Never Split the Difference by Chris Voss and Tahl Raz - https://www.amazon.com/Never-Split-Difference-Negotiating-Depended/dp/0062407805

- The Messy Marketplace by Brent Beshore - https://www.amazon.com/Messy-Marketplace-Selling-Business-Imperfect/dp/0998030007


Connect with Luke Andrus:

- Anytime Fitness Website - https://www.anytimefitness.com/

- LinkedIn - https://www.linkedin.com/in/lukeandrus/


Connect with Erik Van Horn:

- Website 

- Instagram 

- Facebook 

- Facebook Group 

- LinkedIn

- YouTube

- Medium


Erik Van Horn is a franchising specialist, and expert in multi-unit, semi-absentee franchise business ownership. From entrepreneur to regional developer, and investor to consultant, Erik has worn many hats over the last two decades, which has provided him unique insight into complex aspects of the industry. If you're a franchisee, a franchisor, or one aspiring to be, subscribe to the Franchise Secrets channel and visit www.FranchiseSecrets.com for even more tactical and practical tools to help you buy, grow, and sell franchises like an expert.

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The Multiples Approach: Navigating Business Valuation and Acquisition with Luke Andrus