Private Equity-Sponsored Rollup In The Fitness Sector
Our client implemented a roll-up within a nationally-branded chain of fitness centers. The client’s growth strategy included the acquisition of existing franchise groups across the US; as well as, the build out of de novo facilities in select geographies. As part of their growth strategy, they sought to create a shared services organization for their back-office functions. The Company’s PE sponsors retained LevelX to deploy an interim CFO to establish their finance and accounting (shared services) operations and position finance to support their growth objectives.
Role / Actions
- Built, from scratch, the internal finance infrastructure to close the books and report monthly financial results for management and other stakeholders; report debt covenant compliance for their credit facility; and highlight strategic, operational, and financial outcomes for the board of directors
- Performed the purchase accounting for multiple acquisitions, including the confirmation and valuation of tangibles and intangibles, the recognition of assets and liabilities on the opening balance sheet, and the identification of contingent considerations
- Worked closely with Corporate Controller to convert accounting records from cash-to-accrual basis (per US GAAP), to restructure chart of accounts, and to perform planning for financial system conversion
- Played lead finance role in due diligence efforts for three (3) add-on acquisitions which nearly doubled the size of the business
- Led the finance and accounting integration effort for five (5) acquisitions and helped the sellers of two of the acquired entities complete external audits of their operations as part of their sell-side Quality of Earnings assessments
- Led selection and full implementation of new financial system, including: requirements definition, system configuration, data transfer and validation, report design, and overall system testing
- Led all of the accounting workflow underlying the recapitalization of the business
- Worked with the legacy accounting firm to complete and file the first consolidated stub-period and full year federal income tax return
- Transitioned all finance leadership responsibilities to new CFO
- Returned to support the CFO as an interim Controller and transitioned controller roles to full-time Controller, once hired
Results
- Successfully established the finance infrastructure and provided key finance leadership for the executive leadership team and board of directors in support of 800% growth over a 5-year period
- Devised a tax strategy that generated nearly $200,000 in annual savings
