Today's Thursday . . . and that means another HALO Talks-Fast Break! Integrity Square Founder and HALO Talks host Pete Moore, dives into the complexities of inventory debt financing in the e-commerce sector, especially as tariffs continue to shake up the financial landscape.

Pete also explores the intricacies of high-interest loans for inventory, as financial institutions begin scrutinizing financial compliance more than ever. Buckle up for potentially challenging months ahead as we navigate this evolving terrain.

A few key takeaways: 

1. Impact of Tariffs on Inventory: The episode discusses how tariffs are potentially impacting the financing of inventory, especially for companies involved in ecommerce that rely on overseas shipments. The tariffs (and on-again/off-again nature of the current administration) pose risks that need to be managed by both companies and their lenders.

2. Risk Management by Banks: Financial institutions are increasingly cautious, with banks scrutinizing loans more closely. Some are already directly accessing company financials to monitor monthly financial performance, aiming to mitigate risks associated with high-interest loans for inventory management.

3. Stringent Compliance Measures: There's a move towards tightening compliance. Banks are expected to enhance their scrutiny of debt facilities, ensuring that they only lend to companies with a strong ability to repay, given the financial uncertainty heightened by tariffs.

4. Operational Precautions: Companies need to brace themselves for an environment where financial oversight and risk evaluation by lenders become more stringent. This also suggests a need for companies to maintain robust financial health and present transparent records.

5. Market Uncertainty: The overall message is that the coming months might be "challenging", with potential shifts in how debt and financing will be managed. Pete advises companies to prepare accordingly, indicating a period of financial conservatism might be necessary.

Every Wednesday we release our all new “HALO Academy: 2 Minute Drill" by Integrity Square Founder & HALO Talks host, Pete Moore on everything you need to know for financial literacy, unit economics, legal documents used for M&A and capital raises, capital sources you can access, understanding how financings are structured, valuation metrics and parameters, and what you need to know about your own business before engaging in cap raises and/or a potential sale. If you missed our email about this, you can re-read it here: https://mailchi.mp/9567da51c0ce/2025programschedule  ====================================================== RESOURCES 

• https://www.integritysq.com
• https://www.halotalks.com
• https://www.thehaloacademy.com  ===================================================

ABOUT YOUR INSTRUCTOR  Pete is the Founder, Managing Partner and Chief Dream Architect at Integrity Square ("ISQ"), a leading boutique financial advisory firm focused on the $4.7T Health, Active Lifestyle, Outdoor ("HALO") sector. Since founding ISQ in 2010, the firm has played an active advisory role in 100+ mergers & acquisitions, private placements and advisory assignments across North America.

Pete Moore and his team have also invested in passionate entrepreneurs at HigherDOSE, XTEND, and Promotion Vault. ISQ's media and "live education" properties include HALO Talks, the leading B2B podcast in the sector, Time To Win Again, and the HALO Academy, an Executive Education Bootcamp Series. 

Prior to ISQ, Pete was Head of the Active Lifestyle & Wellness Group at Sagent Advisors (2003-2010.) Prior to 2003, Pete was co-founder of FitnessInsite, a SasS sales management platform with 1500+ clients (based in AZ.) At FitnessInsite, Pete invested his personal capital, leveraged his credit cards and learned what it takes to manage a startup.

Pete built his business and financial acumen on top of the foundation laid at three critical positions early in his career: Senior Associate at Brockway Moran & Partners, the private equity owner of Gold’s Gym International, Inc; worked as an Associate at Donaldson, Lufkin & Jenrette; and an Analyst at Chase Securities. (Now JP Morgan.) 

ISQ saw a need for a deeper & more useful level of education in the HALO sector. In response, we launched the HALO Talks podcast, with 500+ completed interviews and over 120,000 downloads. HALO Talks has become a “must listen” for anyone working or investing in the sector.

Pete graduated from Emory University (BBA, 1994) and received his MBA from Harvard Business School (1999.) While at HBS, he co-founded IRON PLANET, the leading B2B auction site for used heavy equipment, which was sold to Ritchie Bros for $758 million. His hobbies include: Football, basketball, tennis, podcasting, amateur ventriloquism, pro bono DJ and fitness enthusiast.

Mark Fisher's journey began as a self-proclaimed "skinny guy" in high school. Determined to improve his physique, he began working out, a passion that followed him into adulthood. Throughout his twenties, Mark carved out a career as a professional actor in New York City. Although he found moderate success on stage, it was the "fitness bug" that truly captured his heart, leading him to explore opportunities beyond acting and nurturing a deeper passion for the HALO sector. 

Mark also shares how his eclectic approach and the mantra of "ridiculous human, serious fitness" have not only inspired a diverse clientele, but also sparked an entirely new niche in the space. Whether you're a fitness enthusiast, entrepreneur, or seasoned veteran . . . this episode promises insightful revelations and actionable takeaways. Mark created something absolutely unique in the space that continues to thrive.

On building an inclusive community he states, "If you ate lunch alone in a bathroom stall in middle school, you'll likely understand what's going on here." This underscores their commitment to providing a safe and welcoming environment for those who have often felt marginalized or uncomfortable in traditional gym settings, especially catering to queer-identifying individuals and those from the Broadway community.

Key themes discussed

• Mark Fisher's fitness journey.
• Unique branding of Mark Fisher Fitness.
• Importance of marketing and niching.
• Challenges of scaling and exiting a gym business.
• Consulting and helping other gym owners.
• Personal reflections on business decisions.
• Selling and transitioning Mark Fisher Fitness.

A few key takeaways: 

1. Unique Brand Approach: Mark Fisher Fitness carved out a niche by targeting the Broadway community in New York City. By using a unique (and some might say) 'eccentric' (and super clever!) branding approach, like calling their members "ninjas" and referring to their gym as “the enchanted ninja clubhouse of glory and dreams,” they managed to create an incredibly welcoming atmosphere for those who typically may have felt uncomfortable in more traditional gym settings.

2. Importance of Marketing and Community: The success of MFF was partly due to the extensive network he built in the Broadway community. He emphasized the importance of leveraging personal connections and using creative marketing strategies to expand the brand's reach.

3. Adaptability in Business Models: As a consultant, Mark now helps gym owners tailor their models by starting with proven playbooks and adapting these strategies to fit specific markets and circumstances. This includes a heavy focus on marketing and understanding the target audience.

4. Acquisition Mindset: Mark gave a bit of color around the sale of MFF. He emphasizes the importance of aligning business operations with personal and professional goals, ensuring the business can continue to thrive under new ownership while he focuses on other interests and his consulting business.

5. Industry Insight and Growth: Mark's experience highlights the shift in independent gym ownership, especially concerning scaling operations successfully. He points out that while scaling a complex/unique brand like MFF can be challenging, simpler models may present different opportunities for growth and return on investment.

Resources: 

• Mark Fisher: https://www.linkedin.com/in/mark-fisher-57b42440 
• Business for Unicorns: https://businessforunicorns.com 
• Mark Fisher Fitness: https://markfisherfitness.com 
• Prospect Wizard: http://www.theprospectwizard.com
• Promotion Vault: http://www.promotionvault.com
• HigherDose: http://www.higherdose.com

Today's Thursday . . . so that means another HALO Talks-Fast Break! Integrity Square Founder and HALO Talks host Pete Moore, dives deep into the mergers and acquisitions current landscape in the HALO sector, highlighting key movements that will shape the industry for the next five years.

Pete discusses the sale of five companies from one private equity firm to another, including the announced sale of Crunch Fitness by the TPG Group. He explores the strategic decisions around debt, risks akin to those faced during COVID by companies like YouFIT and Gold's Gym, and the financial benchmarks set by giants such as Planet Fitness and Lifetime Fitness.

Pete also touches on two rapidly expanding sunbelt chains and area developers in the Northeast and Southeast. Tune in to understand how these fastbreak deals will set the tone for the future of the HALO sector. Go HALO!

A few key takeaways: 

1. Upcoming Private Equity Transactions: There are five significant companies in the sector that are set to be sold from one private equity firm to another. These transactions will be instrumental in setting the tone of the industry for the next five years.

2. Crunch Fitness Sale: The sale of Crunch, currently owned by TPG Group, is one such anticipated deal. It's predicted that the sale will aim for a multiple just under the 20 times EBITDA that Planet Fitness enjoys.

3. Debt Considerations: Another key point is how much debt will be used in these acquisitions. The amount of debt can impact the risk level of the business, especially if another unforeseen black swan event like COVID reoccurs.

4. Growth and Expansion: Two fast-growing chains in the Sunbelt region and substantial Northeast and Southeast franchises are also in play, showing a strong trend toward growth and expansion in the sector.

5. Public Company Benchmarks: Public companies like Planet Fitness trading at 20 times EBITDA provide a benchmark for private deals, influencing how these private equity transactions are structured and valued.

Resources

Crunch deal: https://www.reuters.com/markets/deals/tpg-explores-15-billion-plus-sale-gym-chain-crunch-fitness-sources-say-2024-12-03/ 

In this episode, we're excited to have Chris Van Dusen from the venture capital world join us. He brings a wealth of experience from both the VC and entrepreneurial worlds. He shares his unique journey through sales, marketing, and three successful business exits. Chris also talks about Solyco Capital, his firm that prioritizes smart capital over mere funding, and their approach to matching investors with the right opportunities. 

Tune in as we dive into venture capital strategies, how to navigate investment rounds, and the balance of assessing venture potential. He and Pete also discuss the realities of selling a business and the unexpected lessons learned from being an angel investor. Whether you're an entrepreneur looking to perhaps one day sell your business, or are already an investor in the HALO space, Chris's perspective absolutely offers a fresh take!

On funding and valuation, Chris states, "To qualify for your Series B, you'd ask . . . did I hit those goals? And secondarily, am I on glide path for the next big growth or step function of my business? If the answer is no, then you're not going to get this larger, new valuation. If the answer is 'maybe, but I need a little bit more time,' maybe you do what's called an extension round . . . it's maybe the same valuation because you really haven't hit it, but you're very close."

Key themes discussed

• Private Equity Fund Term Sheet Dynamics
• Series B Funding and Valuation Criteria
• Regrets of Angel Investing
• Pandemic-Proof Investment Strategies
• Entrepreneurial Struggles and Successes
• Navigating Pivots in Startups
• Challenges in Selling Businesses
• Entrepreneurial Deal Insights

A few key takeaways: 

1. Smart Capital Over Just Capital: Chris emphasizes the importance of "smart money" versus just having capital. He elaborates on how smart investors not only provide funds but also strategic guidance and support to help companies scale.

2. Flexible Investment Strategy: Instead of raising a fund and sticking to a mandate, Solyco finds great assets first and then raises capital specifically for each venture. This allows them to be more flexible and diverse in their investment choices.

3. Value and Growth Stages: Chris discusses the importance of each investment stage from Seed to Series A, B, etc. He stresses that value isn't automatically created and validated at every stage; instead, growth and meeting KPIs are crucial for valuation increases.

4. Portfolio Theory in Investing: While angels often invest in single deals that can be risky, professional investment firms use portfolio theory, investing in multiple ventures to balance risks and potential rewards. This allows them to absorb losses more efficiently while aiming for high returns from successful ventures.

5. Relationship Building and Board Involvement: Chris highlights the importance of having seats on the board or being deeply involved in the companies they invest in, to have a better understanding of the business and to support strategic pivots if necessary.

Resources: 

• Chris Van Dusen: https://www.linkedin.com/in/chrismvandusen 
• Solyco Capital: https://www.solycocapital.com/ 
• Prospect Wizard: http://www.theprospectwizard.com
• Promotion Vault: http://www.promotionvault.com
• HigherDose: http://www.higherdose.com

Every Wednesday we release our all new “HALO Academy: 2 Minute Drill" by Integrity Square Founder & HALO Talks host, Pete Moore on everything you need to know for financial literacy, unit economics, legal documents used for M&A and capital raises, capital sources you can access, understanding how financings are structured, valuation metrics and parameters, and what you need to know about your own business before engaging in cap raises and/or a potential sale. If you missed our email about this, you can re-read it here: https://mailchi.mp/9567da51c0ce/2025programschedule  ====================================================== RESOURCES 

• https://www.integritysq.com
• https://www.halotalks.com
• https://www.thehaloacademy.com  ===================================================

ABOUT YOUR INSTRUCTOR  Pete is the Founder, Managing Partner and Chief Dream Architect at Integrity Square ("ISQ"), a leading boutique financial advisory firm focused on the $4.7T Health, Active Lifestyle, Outdoor ("HALO") sector. Since founding ISQ in 2010, the firm has played an active advisory role in 100+ mergers & acquisitions, private placements and advisory assignments across North America.

Pete Moore and his team have also invested in passionate entrepreneurs at HigherDOSE, XTEND, and Promotion Vault. ISQ's media and "live education" properties include HALO Talks, the leading B2B podcast in the sector, Time To Win Again, and the HALO Academy, an Executive Education Bootcamp Series. 

Prior to ISQ, Pete was Head of the Active Lifestyle & Wellness Group at Sagent Advisors (2003-2010.) Prior to 2003, Pete was co-founder of FitnessInsite, a SasS sales management platform with 1500+ clients (based in AZ.) At FitnessInsite, Pete invested his personal capital, leveraged his credit cards and learned what it takes to manage a startup.

Pete built his business and financial acumen on top of the foundation laid at three critical positions early in his career: Senior Associate at Brockway Moran & Partners, the private equity owner of Gold’s Gym International, Inc; worked as an Associate at Donaldson, Lufkin & Jenrette; and an Analyst at Chase Securities. (Now JP Morgan.) 

ISQ saw a need for a deeper & more useful level of education in the HALO sector. In response, we launched the HALO Talks podcast, with 500+ completed interviews and over 120,000 downloads. HALO Talks has become a “must listen” for anyone working or investing in the sector.

Pete graduated from Emory University (BBA, 1994) and received his MBA from Harvard Business School (1999.) While at HBS, he co-founded IRON PLANET, the leading B2B auction site for used heavy equipment, which was sold to Ritchie Bros for $758 million. His hobbies include: Football, basketball, tennis, podcasting, amateur ventriloquism, pro bono DJ and fitness enthusiast.

In today's episode, host Pete Moore is joined by dynamic entrepreneur, Kevin Wathey. Kevin shares his journey from a deeply personal tragedy with his Mom, to becoming a multi-faceted entrepreneur, spearheading innovative projects across the globe. The discussion dives into two latest (and very complementary) ventures, including a new wellness resort set in Costa Rica, tailored for high-performing individuals seeking holistic health transformations. 

Kevin also touches on Baseline, his health tech platform designed to revolutionize personal health management by offering customized experiences based on unique biological data. With insights on personal motivation, the importance of wellness, and his ambitious plans for future locations in Italy and South Africa, this episode is a must-listen for those interested in the fusion of hospitality, technology, and health.

On building out Velara, Kevin mentions, "The acquisition in Costa Rica was a preexisting boutique hotel. It was 24 rooms, two restaurants, a spa, and five acres of beachfront, on the Pacific Coast in the in the Nicoya Blue Zone. The intention was never to keep it as is, but to expand it. Right before we closed on it, the previous owner came to me and said, 'Hey. We have two extra plots of land adjacent. Would you like those as well?"

Key themes discussed

• Overcoming Limits Through Determination
• Opens Yoga Studio at 24
• Beachfront Hotel Expansion Project
• Pura Vida: A Subtractive Approach
• Baseline: Life Quality Scoring Platform
• Redefining Success and Profitability
• Embrace Workout Recovery Now

A few key takeaways: 

1. Tragic Inspiration: Kevin shared a deeply personal story about how his mother's battle and subsequent passing from pancreatic cancer inspired him to pursue a "life without limitations." This taught him that whatever we focus on, we have the potential to accomplish.

2. Career Path: Kevin's journey from playing semi-pro hockey to getting into acting, then discovering yoga in Bali, and eventually moving into the hospitality industry, showcases his wide variety of experiences. These varied paths have shaped his entrepreneurial ventures today.

3. Building in Costa Rica: Kevin discussed acquiring and expanding a pre-existing boutique hotel in Costa Rica into a larger resort with a focus on health and wellness tailored to guests through testing prior to their stay. This venture targets high-performing individuals seeking more holistic health experiences.

4. Baseline Health Tech Platform: Complementing the resort, Kevin is also developing Baseline, a health tech platform that provides personalized health scores based on lifestyle and behavioral interventions. It's designed to track a client's health progress over time and is aimed at reducing dependence on pharmaceuticals.

5. Entrepreneurial Vision: Kevin is balancing two major projects simultaneously, driven by an overarching vision of holistic wellness and lifestyle improvement. He sees both as complementary, each aiding the success of the other.

Click here to download transcript.  

Resources: 

• Kevin Wathey: https://www.linkedin.com/in/kevinwathey 
• Baseline: https://www.getbaseline.com 
• Velara Resorts: https://velararesorts.com
• Prospect Wizard: http://www.theprospectwizard.com
• Promotion Vault: http://www.promotionvault.com
• HigherDose: http://www.higherdose.com

Every Wednesday we release our all new “HALO Academy: 2 Minute Financial Drill" by Integrity Square Founder & HALO Talks host, Pete Moore on everything you need to know for financial literacy, unit economics, legal documents used for M&A and capital raises, capital sources you can access, understanding how financings are structured, valuation metrics and parameters, and what you need to know about your own business before engaging in cap raises and/or a potential sale. If you missed our email about this, you can re-read it here: https://mailchi.mp/9567da51c0ce/2025programschedule  ====================================================== RESOURCES 

• https://www.integritysq.com
• https://www.halotalks.com
• https://www.thehaloacademy.com  ===================================================

ABOUT YOUR INSTRUCTOR  Pete is the Founder, Managing Partner and Chief Dream Architect at Integrity Square ("ISQ"), a leading boutique financial advisory firm focused on the $4.7T Health, Active Lifestyle, Outdoor ("HALO") sector. Since founding ISQ in 2010, the firm has played an active advisory role in 100+ mergers & acquisitions, private placements and advisory assignments across North America.

Pete Moore and his team have also invested in passionate entrepreneurs at HigherDOSE, XTEND, and Promotion Vault. ISQ's media and "live education" properties include HALO Talks, the leading B2B podcast in the sector, Time To Win Again, and the HALO Academy, an Executive Education Bootcamp Series. 

Prior to ISQ, Pete was Head of the Active Lifestyle & Wellness Group at Sagent Advisors (2003-2010.) Prior to 2003, Pete was co-founder of FitnessInsite, a SasS sales management platform with 1500+ clients (based in AZ.) At FitnessInsite, Pete invested his personal capital, leveraged his credit cards and learned what it takes to manage a startup.

Pete built his business and financial acumen on top of the foundation laid at three critical positions early in his career: Senior Associate at Brockway Moran & Partners, the private equity owner of Gold’s Gym International, Inc; worked as an Associate at Donaldson, Lufkin & Jenrette; and an Analyst at Chase Securities. (Now JP Morgan.) 

ISQ saw a need for a deeper & more useful level of education in the HALO sector. In response, we launched the HALO Talks podcast, with 500+ completed interviews and over 120,000 downloads. HALO Talks has become a “must listen” for anyone working or investing in the sector.

Pete graduated from Emory University (BBA, 1994) and received his MBA from Harvard Business School (1999.) While at HBS, he co-founded IRON PLANET, the leading B2B auction site for used heavy equipment, which was sold to Ritchie Bros for $758 million. His hobbies include: Football, basketball, tennis, podcasting, amateur ventriloquism, pro bono DJ and fitness enthusiast.

In this episode, we're joined by Deb Strougo, longtime industry veteran in the HALO sector. Deb shares her insights both as a seasoned consumer and advisor, exploring the current and future landscape of fitness. Pete and Deb dive deep into the experience and inner workings of high-end clubs like Bay Club, weighing their offerings and discussing the evolving needs of today's customer.

As Deb articulates the growing importance of holistic wellness and the cultural shifts in exercise preferences, she provides a unique perspective on how fitness businesses can thrive. Listen now to learn how to navigate the ever-changing dynamics of the industry and the collaborative potential between new entrants and established players. Whether you're a fitness entrepreneur, industry insider, or just passionate about health, this conversation has a ton of valuable takeaways. 

With regards to empowering fitness choices and the need to provide more diverse options Deb states, "In the Pilates space for example, you're seeing a lot of women that are interested in getting more fit, but in a low impact sort of way. They're not into the whole HIIT thing. Some may have had fertility related issues, and so they are looking in other directions."

Key themes discussed

• HALO Academy promotion & consumer insights
• Boutique studio vs. big class experience
• Bay Club's competitive edge
• Orange Theory franchises in big gyms
• Enhancing group exercise programs
• Innovative membership solutions in fitness
• Brand differentiation & daily performance
• Thriving versus struggling businesses insight
• Consulting Deborah for industry insights

A few key takeaways: 

1. Holistic Approach to Fitness: Deborah emphasizes the growing trend toward the holistic human being, which involves not just physical fitness but also aspects of nutrition, sleep, and overall well-being. Fitness centers are increasingly integrating these components to cater to the complete lifestyle needs of their clients.

2. Boutique vs. Big Box Gyms: Deborah discusses the advantages and challenges of boutique fitness studios compared to larger gyms. While big box gyms like Bay Clubs have extensive amenities and services, boutiques offer a personalized, intimate experience that many consumers also value.

3. Pilates Popularity: Strougo highlights the increasing demand for Pilates as people seek lower-impact, effective workout options. This trend is driven by the modality's adaptability to different fitness needs, from mobility to strengthening, making it a staple in many fitness routines.

4. Franchising Challenges: Deb and Pete also shed light on the complexities of franchising within the HALO space. Successful franchises need to balance innovation and operational consistency, and both franchisors and franchisees must work together to optimize business models and cater to local markets effectively.

5. Industry Insights and Networking: Deborah stresses the importance of leveraging industry knowledge and networking with experienced professionals when entering the fitness space. Understanding historical successes and failures can guide a new entrant or existing business in evolving effectively and avoiding common pitfalls.

Click here to download transcript. 

Resources: 

• Debra Strougo: https://www.linkedin.com/in/debrastrougo/  
• Prospect Wizard: http://www.theprospectwizard.com
• Promotion Vault: http://www.promotionvault.com
• HigherDose: http://www.higherdose.com

Every Wednesday we release our all new “HALO Academy: 2 Minute Drill" by Integrity Square Founder & HALO Talks host, Pete Moore on everything you need to know for financial literacy, unit economics, legal documents used for M&A and capital raises, capital sources you can access, understanding how financings are structured, valuation metrics and parameters, and what you need to know about your own business before engaging in cap raises and/or a potential sale. If you missed our email about this, you can re-read it here: https://mailchi.mp/9567da51c0ce/2025programschedule  ====================================================== RESOURCES 

• https://www.integritysq.com
• https://www.halotalks.com
• https://www.thehaloacademy.com  ===================================================

ABOUT YOUR INSTRUCTOR  Pete is the Founder, Managing Partner and Chief Dream Architect at Integrity Square ("ISQ"), a leading boutique financial advisory firm focused on the $4.7T Health, Active Lifestyle, Outdoor ("HALO") sector. Since founding ISQ in 2010, the firm has played an active advisory role in 100+ mergers & acquisitions, private placements and advisory assignments across North America.

Pete Moore and his team have also invested in passionate entrepreneurs at HigherDOSE, XTEND, and Promotion Vault. ISQ's media and "live education" properties include HALO Talks, the leading B2B podcast in the sector, Time To Win Again, and the HALO Academy, an Executive Education Bootcamp Series. 

Prior to ISQ, Pete was Head of the Active Lifestyle & Wellness Group at Sagent Advisors (2003-2010.) Prior to 2003, Pete was co-founder of FitnessInsite, a SasS sales management platform with 1500+ clients (based in AZ.) At FitnessInsite, Pete invested his personal capital, leveraged his credit cards and learned what it takes to manage a startup.

Pete built his business and financial acumen on top of the foundation laid at three critical positions early in his career: Senior Associate at Brockway Moran & Partners, the private equity owner of Gold’s Gym International, Inc; worked as an Associate at Donaldson, Lufkin & Jenrette; and an Analyst at Chase Securities. (Now JP Morgan.) 

ISQ saw a need for a deeper & more useful level of education in the HALO sector. In response, we launched the HALO Talks podcast, with 500+ completed interviews and over 120,000 downloads. HALO Talks has become a “must listen” for anyone working or investing in the sector.

Pete graduated from Emory University (BBA, 1994) and received his MBA from Harvard Business School (1999.) While at HBS, he co-founded IRON PLANET, the leading B2B auction site for used heavy equipment, which was sold to Ritchie Bros for $758 million. His hobbies include: Football, basketball, tennis, podcasting, amateur ventriloquism, pro bono DJ and fitness enthusiast.