“At Club Pilates, we’ve worked to differentiate our business by offering a best-in-class workout. FocalPoint used its creativity to help me achieve my goals.”Anthony Geisler, CEO of Club Pilates
The Company’s shareholders engaged FocalPoint Partners (“FocalPoint”) to explore a variety of transaction alternatives, including a growth capital infusion to support the continued investment and expansion of the Company’s national footprint. Club Pilates offered investors a profitable and scalable platform with strong unit-level economics driven by low initial investment.
As the closing date approached, issues arose between the two investor groups that were partnering on the transaction. It became clear that the partnership was doomed, imperiling the entire transaction. Other hurdles to consummating a transaction included a limited track record of newly-opened locations, and the overall depth and complexity of diligence requirements imposed by the investors.