What Is Your Yoga Studio Worth? EBITDA Multiples Explained
Yoga studios typically sell for 2.5x–4.5x EBITDA. Membership mix, instructor stability, and lease terms are the critical drivers that push your valuation toward the top of that range.
Yoga studio valuations in the lower middle market are primarily driven by EBITDA multiples ranging from 2.5x to 4.5x, applied to adjusted owner earnings. Studios with 60%+ recurring membership revenue, a tenured instructor team, and a clean long-term lease command premium multiples. Drop-in-dependent studios with owner-led instruction and weak financial records trade at the low end. Buyers — often SBA-financed individuals or boutique fitness platform operators — scrutinize Mindbody data, churn rates, and lease assignability before applying a multiple.
Yoga Studio EBITDA Multiple Ranges by Tier
| Business Tier | EBITDA Range | Multiple Range | Notes |
|---|---|---|---|
| Distressed or Below-Average | $50K–$120K | 2.5x–3.0x | Owner teaches most classes, majority drop-in revenue, short lease remaining, or declining membership trends. Limited transferable value without seller involvement post-close. |
| Average | $120K–$200K | 3.0x–3.5x | Moderate membership base, mixed recurring and drop-in revenue, adequate lease term. Some instructor depth but mild key-person dependency. Serviceable financials. |
| Strong | $200K–$350K | 3.5x–4.0x | 60%+ recurring membership revenue, multi-instructor team with contracts, favorable lease with assignment clause, documented SOPs, and stable or growing revenue trends. |
| Premium | $350K+ | 4.0x–4.5x | High membership retention, owner-independent operations, strong Google and social presence, long-term lease, potential teacher training or retail revenue diversification. |
What Drives Yoga Studio Multiples
Recurring Membership Revenue Mix
High Positive impactStudios with 60%+ of revenue from auto-renewing monthly memberships demonstrate predictable cash flow, reducing buyer risk and directly supporting higher EBITDA multiples.
Instructor Team Stability
High Positive impactA tenured, multi-instructor team with signed contracts and non-solicitation agreements eliminates key-person risk — one of the top concerns for yoga studio acquirers.
Lease Quality and Assignability
High Positive impactA favorable long-term lease with clear assignment provisions and a reasonable rent-to-revenue ratio is critical. Poor lease terms can kill deals or force price reductions.
Owner Dependency
High Negative impactIf the owner teaches the majority of classes or is the face of the brand, buyers discount heavily. Transitioning teaching responsibilities 6–12 months pre-sale is essential.
Financial Record Quality
Moderate Positive impactThree years of clean P&Ls, tax returns, and organized Mindbody data accelerate buyer confidence and reduce deal risk, supporting higher multiples and faster closings.
Recent Market Trends
Post-pandemic, yoga studios with hybrid digital offerings and strong membership retention have recovered well, while drop-in-dependent studios continue to lag. Boutique fitness platform consolidators are increasingly active acquirers, applying modest premium multiples for studios in high-density urban and suburban markets with proven recurring revenue models.
Sample Yoga Studio Transactions
Suburban yoga studio, 8-year operating history, 65% membership revenue, 4 instructors with contracts, 5-year lease with renewal option, minimal owner teaching load.
$210,000
EBITDA
3.8x
Multiple
$798,000
Price
Urban boutique studio, strong Google reviews, owner teaches 40% of classes, mixed drop-in and membership revenue, lease expires in 18 months with uncertain renewal.
$145,000
EBITDA
2.9x
Multiple
$420,500
Price
Multi-discipline wellness studio offering yoga, meditation, and teacher training, 70%+ recurring revenue, documented SOPs, owner-independent operations, long-term lease.
$320,000
EBITDA
4.2x
Multiple
$1,344,000
Price
EBITDA Valuation Estimator
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Industry: Yoga Studio · Multiples based on 3.0x–3.5x (Average)
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Frequently Asked Questions
What EBITDA multiple should I expect when selling my yoga studio?
Most yoga studios sell for 2.5x–4.5x EBITDA. Studios with strong membership retention, multi-instructor teams, and clean leases earn 3.8x–4.5x. Owner-dependent studios with drop-in revenue typically land at 2.5x–3.2x.
How is EBITDA calculated for a yoga studio acquisition?
Start with net income, add back interest, taxes, depreciation, and amortization, then adjust for owner salary above market rate and any personal expenses run through the business. This produces Seller's Discretionary Earnings.
Does SBA financing affect how yoga studios are valued?
SBA 7(a) loans are widely used in yoga studio acquisitions. Lenders require positive adjusted EBITDA, clean financials, and a lease with sufficient term. SBA eligibility can expand the buyer pool and support stronger final prices.
What kills yoga studio valuations during due diligence?
The biggest valuation killers are owner-centric teaching schedules, high membership churn, a short or non-assignable lease, declining year-over-year revenue, and commingled personal expenses in business financials.
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