With growing sales but declining profits, Hoffacker Health and Fitness retained Cosgrove Partners to develop a profitability plan and management structure.
The initiative included:
- Development of a new pricing model
- Creation of several new product offerings
- Updated compensation structure
- New marketing approach
COSGROVE PARTNERS ACTION
During the initial 4-week engagement, CP developed a new comprehensive business model, growth strategy and organizational structure. In addition, CP made an equity investment in the company allowing the management team the flexibility in implement the model.
The company experienced an average of 13% CAGR for the following 5 years and earning improvement of more than 800%. The company currently operates 3 additional locations and produces at above 25% EBITDA.