I’ve got BIG NEWS! We have just completed a minority share investment transaction with LNK Partners, a private equity group out of New York City which also owns interests in Au Bon Pain, Natural Food Holdings, PVH (Calvin Klein, Tommy Hilfiger, etc.) and now Beachbody!
Our objectives in doing this deal were to provide additional liquidity for investment in technology and add senior management expertise to the Board of Directors.
In the process of reviewing the company, LNK got up to speed on our mission, Core Values, and challenges. Across the board, they agreed with our Core Purpose, they see our incredible potential, and they are excited to help us face our challenges, specifically as we upgrade operations infrastructure and IT, and grow the company responsibly.
The key value drivers to make this a productive transaction for LNK and Beachbody are:
1) Continued rapid growth of the Team Beachbody Coach Network, specifically adding/retaining more Coaches and increasing revenue per Coach
2) Continued growth of the direct marketing business with increased emphasis on lifetime value of a customer
I believe this starts a very exciting new chapter for Beachbody, not unlike the transition we went through in 2007 when we launched the Coach Network and our foray into Beauty at the same time. But this challenge is more about how we approach the business than about what we are doing to generate business. This exciting development means holding myself and the organization to higher standards of consistency and professionalism – all directly related to how we execute on our Core Values and Core Purpose!
Speaking of which, it was our Core Purpose and values which really attracted LNK to our business. They loved the numbers and the brands, but the WAY we run the company – that attitude we all have about what we do and the intent we have with the way we do it, both as employees and Team Beachbody coaches – is what made them feel that this is a world class opportunity.
The team at LNK are a great fit for us. Not only do they appreciate building a business, but more appreciate that it is done in a way that enhances society in some meaningful way.
Of course, this would not have been possible without YOU, our Team Beachbody Coaches and our customers. Beachbody is not me, it is not Jon, and it is certainly not a jewel in the crown of an investor. This is a living, breathing collection of great people with great ideas and potential. Now we have the resources and additional experience to help us achieve that potential. I’ve never been as proud – or as excited! – about what our future can be. We’ve got more ambition than ever before and now we’ve got even more resources to turn that ambition into reality.
Thank you for being in this business with me. Here’s to creating the world leader in health and fitness…BEACHBODY!