HALO Academy 2 Minute Financial Drill-Funds Flow Closing

𝗛𝗔𝗟𝗢 𝗔𝗰𝗮𝗱𝗲𝗺𝘆 𝗧𝘄𝗼 𝗠𝗶𝗻𝘂𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗗𝗿𝗶𝗹𝗹𝘀: 𝗙𝘂𝗻𝗱𝘀 𝗙𝗹𝗼𝘄 𝗖𝗹𝗼𝘀𝗶𝗻𝗴

This week we're finally at the ninth-inning in closing our deal. 

We've gone through all the prior steps. . . club financials continue to perform and—against all odds (!) —every landlord signed their lease assignments. No last-minute disasters, no drama. (This never happens, but work with me for the sake of illustration. Ha)! 

𝗪𝗵𝗮𝘁’𝘀 𝗙𝘂𝗻𝗱𝘀 𝗙𝗹𝗼𝘄, 𝗔𝗻𝘆𝘄𝗮𝘆?

All parties expecting cash are listed in a Funds Flow Excel sheet.

In this case, $3 million is set aside into an escrow account for two years, ready for any unforeseen surprises.

Equipment lenders (like Macrolease) get paid directly by the buyers, ensuring all liens are cleared before ownership fully transfers.

Every last closing cost—success fees, accountants, landlord payments—is disbursed.

𝗧𝗵𝗲 𝗩𝗶𝗰𝘁𝗼𝗿𝘆 𝗟𝗮𝗽

With all wires sent and debts cleared, what’s left? A classic “tombstone” celebration for the team, and a HUGE sense of accomplishment. 

These deals take a long time to close. . .anyone who says otherwise is lying (or doesn't truly know the space.) Our shortest deal in the history of ISQ took 60 days. Our longest? About 14 months. 

Until next week—Go HALO!

We go into much more detail in the HALO Academy. Registration open now for our September cohort: https://www.thehaloacademy.com

Episode Transcript

(00:00):
This is Pete Moore. I am month six and two thirds, but I'm really
at the ninth inning of this closing. We're excited to report
that the company's financials have continued to perform.
We're happy to report that all 20 landlords miraculously
have signed their lease assignment process and nothing's
happened that has affected the business. No fires in any

(00:23):
spas or saunas, no sexual harassment suits, no
issues with any of the company's employees leaving that said, they
were signing up for the buyer's deal. And everything is
ready to go to Funds Flow. What do I
mean by that? Once I go to Funds Flow, there is an Excel sheet
that includes everyone that is getting money from the Ganieland Group

(00:45):
on their purchase of the $60 million deal. The 3
million is going into Chase Bank's escrow account to hold for a
rainy day, which will be leased to the seller in two years.
If nothing is proven to be untrue, then
we have all the debt that is associated with all the equipment. So
Macrolease might have $10 million of debt on the equipment

(01:07):
that are in my clubs. They get paid directly by the Ganilin Group
because the Ganlon Group needs to know that those assets are now
released and now they own them because a debt provider will have
a lien or a claim to equipment. So instead of me
sending 60 million to my friend over at Project
Willow, who's the seller and hope and pray that he pays

(01:29):
off all the debt, the debt will get paid at closing. So will the Integrity
Square success fee. So will the accountants that were on the
deal. So will all the closing fees and payments that need to be made
potentially to any landlords on the change of control that are
in there as security deposits. And the money is wired
and the deal is done. The deal has closed. No way.

(01:54):
And the tombstone is made up for a friend named Jason Grunfeld.
You okay? We heard this is your third tombstone. How do you feel? It
feels good. You know, it was a team effort, but, you know, we got after
it and many more to come. Go, Rosa. Go, Halo.
Let's go, Grunfeld.
That's it. We're done. Done, bro. How's it wrap.