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 Generation Health A health club for your generation.

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Presentation on theme: " Generation Health A health club for your generation."— Presentation transcript:

1  Generation Health A health club for your generation

2  GH Demographics are changing. Why haven’t our health clubs?

3 Generation Health will be a premier brand of health clubs catering towards the baby boomer generation and retirees Overview Blue ocean opportunity Largest growing population segment High disposable income More free-time and greater focus on health Clustered retirement communities throughout the city Need for a facility and guidance with health and wellness

4 Objective Obtain $500,000 in equity financing Current 5 partners will each invest $100K $500K additional equity investment for 49.9% of the company and ability to elect 2/5 board members. The new equity investor(s) will not be required to make any personal guarantees on loans Land, building and equipment will be pledged against the mortgage ($1.35 million) and credit facility ($800K)

5 Our Professionals Director of Operations David Colleran, BHKin, Kinesiologist, CA Director of Finance & Accounting Joseph Muzzin, B.Econ, CA Director of Sales & Marketing Jeffrey Burt, B.A., CA

6 PricewaterhouseCoopers World Class Facility Built in University Heights Equipment geared to Geriatric Health & Wellness Professionals & services catering to an aging population Facility & Instruction

7 PricewaterhouseCoopers Our Members: 50-85 years of age Educated, married or widower Retired or nearing retirement High disposable income Active already or interested in health & wellness Looking for somewhere to spend extra time Community-oriented Recovering from an accident, fall or operation Market Slide 7

8 PricewaterhouseCoopers Facility and staff will cater to Geriatric health & wellness- nothing like it exists Promote a sense of community in the club Offer extras such as one-on-one physiotherapy and training, outdoor excursions and sell gear and supplements catering to the elderly Competitive Advantage

9 Revenue Model Generation Health will offer a high quality facility & services at a premium price……….….. Compete with fitness facilities, Physiotherapy clinics, Rehab Specialists and Other Clubs… Slide 9

10 Key Success Factors 1. Selling clients on the value of a health club created for their specific age group 2. Justifying our premium price by providing a first-class facility and quality instruction and services 3. Maintaining member loyalty through promoting a sense of community among members Slide 10

11 PricewaterhouseCoopers Return on investment of 28% Initial investment paid back in the 6 th year of operations Large gross margins Unlimited opportunities for revenue growth through new locations Financial Returns

12 Conclusion Key Investment Considerations −High barriers to entry −Strong projected investment growth and return −Reduced risk from marketability of capital assets −High growth potential in the industry giving rise to possible expansion −Management and directors with significant personal investment

13 Appendices

14 Financial Highlights Scenario Analysis: Breakeven level of membership at base case prices…….. 724 Sensitivity Analysis Worst CaseConservative BaseBest Case Interest Rate14%10%6% IRR32%33%35% Payback PeriodYear 7 Year 6 Membership Fee100150175 IRR17%33%42% Payback PeriodYear 9Year 7Year 6 Enrollment Growth15%25%40% IRR18%33%34% Payback PeriodYear 9Year 7Year 6 *Sustainable growth rate after 2nd year of operations, up to capacity of 2000

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