PMO & Restructuring of a Health & Wellness Group Company

Client / Industry Brief

The client owns and operates a group of gyms in Qatar with nearly 10,000 members.
In 2019, the company expanded operations by setting up two new centres. However, delay in construction and execution has seen these centres plagued with low footfall
This has put cash flow pressure on the company making it difficult for them to meet loan obligations to the bank

Developing the required context and gathering management inputs from internal stakeholders and promoters on the current operations, challenges and future vision for the company.
Validation of inputs received from the management, finance and current operation team.
Development of a business plan and loan restructuring documents required by the bank
Preparation of a financial forecast and loan restructuring model that illustrated to the bank the ability of the company to fulfil the loan obligations

Based on analysis conducted, EmPact defined the key success factors for the proposed venture as follows:
Consolidation of existing loans and outstanding creditors to be restructured into one loan
Extension of tenure of loan to 12 years and approved disbursement of QAR 20 Mn to be used to fund cash shortfalls the company may experience in 2020