Andrew Zezas (00:04.856)
M &A activity recovered significantly in 2025, with global deal value reaching around $3.6 trillion, about 77 % of the 21 peak pre-pandemic level, and increasing for the second year in a row. The US accounted for most of this growth, driving nearly 85 % of the year-over-year increase in total value.

Welcome to CFO IQ, where CFOs share insights and intelligence on innovative growth strategies and the experiences that drive success for their companies and themselves. I'm your host, Andy Ziesels.

Brian Giambagno (00:41.23)
Thank

Andrew Zezas (00:44.938)
Interestingly, transformative mega deals, those with value in excess of a billion dollars, have returned to prominence, signaling a shift from the cautious deal environment of 2024 to bold consolidation strategies in sectors like healthcare, technology, and energy.

Brian Giambagno (01:04.839)
Thank you.

Andrew Zezas (01:06.04)
What does this mean? Well, it means that while the number of deals hasn't fully recovered to early 2020 levels, high value deals are driving headline figures and pushing overall market value upward. And that's true in all sectors, including the middle market.

Today I'm joined by Brian Jim Bagno. Brian's career has taken him from operations to line management for regional companies to those with an international twist to family-owned and private equity-owned companies and a list of acquisitions that will absolutely surprise you. Brian is a long-term friend and a very, very accomplished CFO. Brian, I'm so glad you're here to share your perspectives with our CFO IQ audience. Thanks for being with us here today.

Brian Giambagno (01:34.222)
you

Brian Giambagno (01:52.748)
Thank you having me, Andy. My pleasure.

Andrew Zezas (01:55.862)
We're going to have some fun. So let's talk a little bit about &A. Your last CFO role was one in which you completed a huge number of acquisitions. Did you actually complete, was the number over 50 acquisitions? Was that the right number?

Brian Giambagno (02:12.276)
It was. It was. I spent about 16 years with that company and during my 16 year career, we closed over 50 acquisitions, ranging from ranging from a million to, you know, a $200 million type of deal and everything in between.

Andrew Zezas (02:22.68)
That's amazing.

Andrew Zezas (02:29.708)
That's amazing, Brian. How did you close 50 deals successfully, of course, while you're maintaining your CFO day job?

Brian Giambagno (02:40.652)
I say early on, we did it in our spare time. We had a detailed project plan. We pulled folks out of their day job, the cross-functional teams from HR to finance to IT to operations. And it was challenging, but it was also invigorating. We knew where we were going. We knew what the challenge in front of us. And we were up for that challenge.

But as we grew and the volume of transactions began to pick up and they started to overlap, we knew we needed to add resources. So over time, we added dedicated resources. Probably 10 years into, we added our first fully dedicated director of M &A. We added a PMO, a project management office, because of the overlapping tasks and project plans.

And then we even went as far as a dedicated training group out in the field so that to ensure that our operating integration was successful. So it spanned from, yeah, roll up your sleeves and do it in your spare time to having a pretty sophisticated structure in place to handle the volume of transactions and all the detailed tasks behind them.

Andrew Zezas (04:03.192)
All right, so there's no doubt that you're an expert at team building as well. So, but with that kind of volume, tell me about, well, tell me what the essential components are to achieving that kind of success in &A because 50 transactions over that period of time is tremendous. So tell me about the essential components to do it.

Brian Giambagno (04:22.83)
Sure. And let's even take a step back and look at the transactions. So they usually fall into one of three categories. You're either looking at geographic expansion. You might be looking at a new service offering. Or you might be looking at a transaction to drive operational efficiency, sometimes referred to as a tuck-in. So depending on the size, the complexity, and direction, that kind of dictated the resources needed in the planning.

we use quite frankly, very detailed integration playbook. That playbook was developed and improved over the years. Each of our functional leads had their own workbook within that playbook. Could be finance, HR, IT, right down to, gee, we need to add three more time clocks to the operations so that on day one, the new employees can punch in.

hundreds and hundreds of tasks within a playbook to give our team the guidance. Now, also understanding no two transactions are exactly the same. So you always needed to be able to pivot within a transaction. But our integration would start pre-transaction, weeks in advance, where we bring the team together, discuss the transaction, discuss what we're trying to get out of the transaction.

Andrew Zezas (05:30.23)
All

Brian Giambagno (05:47.082)
Is it expansion? Is it service offering? Is it a simple tuck-in? And then we would continue post-close to ensure we did what we said we were going to do. And I think that's part of the success of these transactions was making sure we did what we said we were going to do.

Andrew Zezas (06:07.352)
So.

you're right, every transaction is a custom, custom project, right? There are no two or the same. But what, you're doing all this, and it sounds like the process and the plan was very, very well laid out and obviously executed well as well, but you were still running a company. So while you're doing all this, and I love the fact you said you started doing it in your spare time, as if you had some of that. But, you know, while you're running a company, you're

you're handling all these acquisitions, but how did at the same time, how did you also drive organic growth?

Brian Giambagno (06:46.968)
So in my career at different companies, for the most part, in that mid-market, I've been in mid-market high growth companies. Some companies focused more on organic, where we have large customers with large transactions, where we were trying to provide new services to those customers, gaining share of wallet of an existing customer and driving organic supplemented by &A. Or on the other hand,

Some companies are really driven by &A and the organic component is a smaller component. So we looked at it from the driving factors. And I spent the past 25 years in the private equity, private equity backed companies. And they kind of lead the way and they'll set out the goals, the long-term kind of three to five, five to seven year horizon. And what do we want to accomplish and how do we want to get there?

Is it driven through M &A? Is it through organic or a combination of the two? And then we make sure we have the resources in place. When we're in such a growth mode, we refer to as the complexity curve. We're coming up the complexity curve. every once in a while, you need to reinvent yourself. You also need to understand what resources you need in place to get to where

you want to go. Where do we want to be three to five years from now? You're running a $500 million business is different than running a $100 million business. Running a billion dollar company is different than a 500. You need different organizational structure. You may need different systems, different processes. That all has to be evaluated while you're balancing organic versus &A growth.

Andrew Zezas (08:21.079)
it.

That's it.

Andrew Zezas (08:37.784)
Were there specific steps that you took to maintain your organic growth while you were focusing on additional acquisitions?

Brian Giambagno (08:46.542)
I would say that's, call that business as usual, right? Your organic growth, your sales team, your customer service, your inside sales continued. And then I would say in addition to that, you had other folks, it finance, HR, operations that were really taking the lead on the &A growth.

Andrew Zezas (09:12.04)
So given given the diversity of your background and all the things you've done in so many directions do you consider yourself more of a generalist or a specialist?

Brian Giambagno (09:23.598)
I would consider myself a generalist. I've functioned in a number of different industries. But I would say my, if you want to talk about a specialty, I spent a lot of time in mid-market. And even how you define mid-market, is it 50 to 500 of revenue? Is it 500 to a billion somewhere in there? I've spent my time in that space. Mid-market, high growth, as you mentioned earlier, many companies I've worked for

I've seen double and triple the revenue of the company during my tenure. I need to take a time out there. I lost my train of thought. Yeah.

Andrew Zezas (10:05.304)
That's okay. You want me to ask the question again? Okay. Joe, we're going to redo this question, right? You were doing fine, Brian. It's okay. I get it. It happens to me too. So Joe, we're going to re-ask question number four. So let me start. Yeah, specialist general.

Brian Giambagno (10:22.562)
Yeah, specialist, yeah.

Andrew Zezas (10:26.904)
Brian, you know, you've done so many things. Your career has taken a lot of different directions and you've accomplished so much. Do consider yourself a generalist or a specialist?

Brian Giambagno (10:40.718)
It's a great question, Andy. In general, would consider myself a generalist. I've worked in a number of different industries, mostly business services, manufacturing, some technology based. If there's a specialization that I have, it's in the mid market, high growth, private equity backed companies. I spent probably the past 25 years in that space, high growth, private equity portfolio companies driving

driving high growth. So I would say from an industry perspective, I'm a generalist from a specialization. If there is one is mid market, high growth, private equity backed companies.

Andrew Zezas (11:24.056)
And you've demonstrated yourself to be a specialist not only in &A growth, which is demonstrated by the tremendous amount of deals you've done, 50 deals in a period of time, but also through organic growth. So I think I'd agree with you with a twist. You're a generalist with a number of specializations.

Brian Giambagno (11:43.182)
That is true. And even within my career, while I spent the past 25 years as a CFO, there was a period of time I stepped out of finance and ran operations. So I have that as a part of my background, which was a unique challenge, but incredibly rewarding. And what it did was gave me that platform, that background to become a business partner to the CEO, a business partner to the executive team.

to see the business with a different lens.

Andrew Zezas (12:16.394)
You've always struck me in the many years that we've known each other, you've always struck me as a true operator. So I'm not surprised to hear you say that.

Now, let me ask you this. gone from, you took your last company in the direction of evolving from a small family-owned company, successful in its own right nonetheless, to a very significant private equity-owned enterprise. In fact, one of the largest private equity-owned companies in its industry.

How did you guide leadership at the company and manage that important transition? What was it like for you as CFO? Because making that transition from small family to large, very large private equity with much of the same leadership in place is a huge evolution. So how did you guide leadership and what was it like for you as a CFO to do that?

Brian Giambagno (13:11.128)
Yeah, I think that the leadership there is, as you described it, that's Leadership and being able to promote change and having the right organization in place, again, kind of talk about that complexity curve, but making sure what we refer to is making sure we have the right people in the right seat of the bus. You know, do we have the organizational structure in place? Do we have the

the tools in place, do we have the processes, and making sure that you're positioned for growth ahead of the curve, right? So, and providing that leadership, but that also that leadership, goes both ways, leadership down within the organization to make sure we have the right resources, but also the leadership to work with the executive team and the private equity sponsors to lay out the plan for growth.

And again, I'm going to say this a few times, but do what you said you were going to do. And as you deliver and you're successful, the private equity sponsors will gain that confidence to continue to provide the financials. So that leadership, I see those two directions, leadership within the organization and then leadership upward to with the executive team and your private equity sponsors and lenders.

Andrew Zezas (14:32.898)
So that makes perfect sense. Talking about private equity, am I correct that you managed at one point, you managed 10 separate private equity sponsors or is that over a period of time?

Brian Giambagno (14:45.934)
That's over a period of time. I've been in companies where we've had one private equity sponsor for my entire duration. I've been in a company where we've had 10 over a 15, 16 year period. We're also, had four at any one time. So, you know, we start out with a small local private equity firm, but as we're growing and you're demonstrating that growth.

You may need more capital for &A and CapEx and working capital. So you expand your investment portfolio either with the existing PE group or you bring in additional private equity. So I've seen it both ways and they have different challenges, you know, having, you know, four different private equity firms and syndicate of lenders at any one time and an executive team.

You need to be nimble, again, delivering on what you said you were going to do goes a long way.

Andrew Zezas (15:46.616)
Sure. And an awful lot of communications, an awful lot of reporting, and you still have all your hair.

Brian Giambagno (15:53.678)
Thanks, Andy. Yeah, it's it's no we've talked about this, but a CFO in the private equity world, the life expectancy, expectancy is about four years. So for me to my career, I've spent the past 25 years and as a CFO in the private equity world, I think it says a lot, we have to have a lot of patience and a lot of discipline, again, both directions to have that team, your team follow you and

understand the growth trajectory, but also working with the private equity group and delivering on what their expectations are.

Andrew Zezas (16:31.042)
Well, you said something very important. You said, you know, having a team follow you. Teams don't follow poor leaders. So apparently you're able to instill an element of confidence in an awful lot of people who are willing to follow you. and I'm not the least bit surprised about that. But let's stay with this transition, the concept of transition from family to private equity or privately held to private equity.

based on your experience, you were to guide, if you were to offer guidance to leadership at a privately held company that's contemplating moving on to private equity.

What recommendations, what would you suggest to them that they should be thinking about? And not just from the business perspective, there are emotional elements to this, there are So what kind of overall guidance would you give to family run, entrepreneurial type folks who are really good at what they do and asking themselves, should we go private equity?

Brian Giambagno (17:18.83)
That's correct.

Brian Giambagno (17:31.03)
I think you touched on a few very important points in there. Some of those decisions aren't necessarily financial. They become emotional. You've got a small, call it mom and pop, family owned, operated business. Grandpa's name might be on the side of the truck or the building. Truly understanding why they're looking to sell. Are they looking to exit completely?

Do they want to be a part of a larger organization? Is this estate planning? Are they looking to pass the business down to their kids? So truly understanding the purpose of why they're engaging with one, selling the business into a larger private equity backed company. They really need to understand that. Culture is key. In a number of companies that I've worked with, we made a

point of maintaining that family owned and operated culture throughout, even as we grew from 50 to 100 to 500 million of revenue, maintaining that culture. Also with the acquisitions, do the sellers want to stay on board? Maybe the seller's family want to stay on board. So I've seen that where it's been a very successful transition maintaining the family within the larger organization.

And that truly helps maintain the family culture also. But also from a family perspective, knowing that they've been making the day-to-day decisions every day of their career. Now they're part of a larger organization where decisions are made at a different level. Boy, the customers, they have my personal cell phone number. They call me when they need something. Well, now those calls are going into a centralized call center. That's a major change.

Andrew Zezas (19:18.712)
All right.

Brian Giambagno (19:24.846)
from an entrepreneur and making sure that they understand those type of changes early in the process so there's no surprises. I've seen a few deals not come through fruition at the very end because reality set in. The emotions got there of...

my God, am I doing? This is dad's business, grandpa's business. No, I don't want to be a part of a larger organization. I want to continue to make the decisions myself. So they really need to understand that early on.

Andrew Zezas (20:02.008)
Brian, I think you're spot on. The emotional aspect of selling a business is crucial to understanding before those decisions can be made. mean, think about it. What drives many entrepreneurs to success is emotion. They want to win. They need to win. They want to do something for their family. They're feeding their children. They're managing a legacy, like you said, that their father or their grandfather or grandmother or mother

started. All those things are emotions. Eventually they have to distill down to dollars and cents and operations. But the entrepreneurial spirit is very, very emotional. And you're right, transitioning from that kind of culture.

dare I say lifestyle to one of a true corporate environment where it's more formal and it's larger and it's vastly different very often is a real challenge for many. And yeah, it gets in the way sometimes and others are able to deal with it. But I agree with one of your first comments is that.

It starts with the entrepreneur deciding, do they wish to sell out? And I don't mean that in a negative sense, sell out, meaning sell a company and go away completely. Or do they want to sell in and become part of something else for themselves, for their family members, for their partners, for others? We see that on the real estate side. As you know, you we advise companies on the real estate implications of buy and sell side &A. And we have the very same conversations with them as a component of the

overall deal, what do want to do with the real estate that you've acquired in the many years that you're in this business? Do you also want to sell that out? Or do you want to sell that in? So it trickles down to the same conversation. I think you're you're spot on.

Andrew Zezas (21:54.708)
So let me switch gears a little bit and move away from the private equity discussion and focus a little bit more on your career. You've done some really great things. You've been with a bunch of different companies in different types of companies, different industries, different regional aspects, different structures, and you've successfully advised leadership throughout your entire career. Share with me some of your more memorable career highlights.

Brian Giambagno (22:20.098)
you know, memorable, but I'll talk about kind of transitional. And I'll start right at the beginning. You know, is, you know, I started out in public accounting, and I'd recommend and mentor the young up and coming executives these days. If you really want to go into accounting and finance, starting out in public accounting is a great place to start. It's kind of where I grew up.

You know, from a technical perspective, management skills, time management, becoming an executive, it was a great place to start. Midway in my career stepping out of finance and going to operations was huge for me personally and professionally. You know, I've been through a number of transactions where I've been on the buy side and I've been on the sell side also. And having the operations experience has, has

My career has benefited significantly from that. Being that business partner to an executive team and a CEO, I'm not sure I could have done that without stepping out of finance and taking an operating role. And then I would say the third is building those teams. Super proud of what I've built over the years. And I look back and...

Sometimes we don't realize that the people that we touch and the lives that we've touched and how people have grown with us, you can't do this alone. I could not do 50 acquisitions in 15 years on my own. You need the team and the people, the infrastructure behind you. And, you know, I look back, I'm just super proud of what we've built and what we've accomplished and the friendships and go back to that family that we've developed over the years.

So it's, to me, that's probably the most rewarding aspect. I've had people relocate from around the world to come work on my team. I've had one woman work at four different companies with me. And I look back on that and I find that incredibly rewarding, the development, the team building, the friendships and the family that we've developed over the years.

Andrew Zezas (24:38.392)
You know what, Brian, I know you for 20 years. I'm not surprised to hear you say that you didn't do this alone. But at the same time, you led some what sounds like some very, very good people. And it sounds like you led people who worked for you and people you worked for. You you led in in, say a 360 degree circle. And you're right, you can't do this on your own. I'm

I'm not surprised to hear you acknowledge that because I don't know that many other people would. But given that we know each other so long and we know a little bit about each other's personal lives, I know you're not ready to go out to pasture. By any stretch, I know you're not done. fact, I might say that you're just getting started again. But I also know you promised me you're to take some time off.

Before you get back in gear, or you throw yourself back into this and do great things for another company or other companies, what are you going to be doing on a non-career basis? How are you going to take some personal time?

Brian Giambagno (25:53.006)
I'm going to say family first, Andy. Spend some time with the family. Taking care of our health. Without our family and our health, what do we have? So just taking some time to decompress, recharge, spend more time with the family. I also want to give back. We've been working so hard for so long. Do we really have the time or take the time to give back to?

be it organizations or folks that have helped us along the way. So I am looking for participation in nonprofits. I'm looking for opportunities in mentorship programs. I've reached out to my business school that I went to and how can I help mentor the young and up and coming finance executives. looking for different ways outside of the business world on how I can stay engaged and kind of give back to the community.

Andrew Zezas (26:40.748)
Wow.

Andrew Zezas (26:51.234)
You know what, that's great. And with that mentality, you will end up doing even more great things in other directions. For years in our company, we've had something called pro bono real estate services, where for bona fide charitable organizations, not-for-profits, we'll provide up to five hours of free service just to offer guidance. Because there are many great organizations out there with wonderful missions that are long on good intentions and short on expertise.

So, you know, like you, if we can offer our services to help, we do. I'm proud of you that you're doing that. I say that as a friend and not the least bit surprised. So my last question is, so after you take a little time and after you, you know, start resting again and you kind of, you know, get your new groove.

What do you plan to do to kind of redeploy that growth focused expertise that you've honed throughout your career?

Brian Giambagno (27:53.72)
Yeah, as you can imagine, like you said, we've known each other for many years. I still have gas in the tank. And I also believe, truly believe that I can continue to add value in that mid-market private equity back space and high growth companies.

Andrew Zezas (28:08.898)
there's no doubt that you're gonna be able to do that for some really great companies.

Brian Giambagno (28:13.88)
So looking to, know, do I work for some private equity portfolio companies and help them, you know, with maybe it's a new investment that they need some support internally. So kind of on an advisory basis, project-based, interim work, I'd love to sit on a few mid-market boards also to provide that guidance and, you know, be it my operational financial expertise from over the years to help guide mid-market companies.

through their growth trajectory. I think that one, it'd be fun. And I find that very rewarding. yeah, I've told folks I've been receiving some phone calls and emails and yeah, if it's something I'm fun and with people I like, I'll take those phone calls all day long. So looking to get back at it after you said I have to recharge the batteries and spend a little time with the family.

I'll be looking into the CFO advisory services field, really focused on private equity-backed mid-market high-growth companies.

Andrew Zezas (29:22.162)
And no doubt when you let the world know that you're ready, I expect your phone will be ringing very loudly, very frequently. It's very interesting. We're friends, we know each other a long time. You've been a client. And yet, as long as we know each other, I still learn new things from you each time we talk.

Brian Giambagno (29:44.142)
It's been fun, Andy, and I appreciate your time and your friendship and guidance. We've been business partners for a number of years, and it's folks like you and others in my network that I'm going to continue to enjoy that time and continue to have professional and personal relationships.

Andrew Zezas (30:02.86)
Thank you, my friend. That means a lot. Brian, this has been great. I'm so grateful that you let me twist your arm to come on to CFO IQ today. I think you shared some great insights. I'm sure our audience, basically your CFO peers and potentially folks who will be interested in talking to you about engaging you are going to get a lot out of today's conversation. Really appreciate you being here today, Brian. Thank you so much.

Brian Giambagno (30:29.954)
Thank you for having me, Andy. Thank you.

Andrew Zezas (30:32.46)
Ladies and gentlemen, thank you for joining us today on CFO IQ. If you'd like to learn more about Brian Jim Bagno, visit our website at CFOIQ.com.

If you'd like to be considered for a CFO IQ interview or for a business story in CFO Intelligence Magazine, by the way, you can read about Brian Jim Bagno also in CFO Intelligence Magazine. Or if you just have suggestions as to topics that you'd like us to explore, email me at andrew.zeses at CFO Intel with two L's dot com and let me know your ideas.

Join us again here on CFO IQ for our next exciting CFO interview. Thanks very much for joining us here. I'm Andrew Zizes. You keep thinking.

Andrew Zezas (31:22.528)
and we're off. Don't shut off your computer.

Andrew Zezas (00:04.137)
This is a pickle.

It looks like a pickle. It even tastes like a pickle because it's a pickle.

This is a pickleball. And this is a pickleball paddle. They're not pickles. But they're in tremendous demand these days as the game of pickleball explodes here in the US and across the globe. Hi, everyone. Welcome to CFO IQ. I'm your host, Andy Zezas. We've got a very interesting show for you today.

We'll be joined today by the senior finance executive at USA Pickleball. So stick around. Pickleball is everywhere these days. It's a paddle sport, blending tennis, badminton, and table tennis, as played indoors or outdoors on badminton-sized courts with a slightly lower net than tennis. Pickleball is experiencing an unprecedented boom. It's becoming one of the fastest growing sports in the United States and beyond.

In 2025, an estimated 36 and a half million Americans played pickleball. And in 2024, the estimates were 19.8 and 10.2 million players respectively, far outpacing most other recreational activities. Now participation isn't limited to casual play and the global pickleball market is expected to continue its tremendous growth. The sports appeal now spans generations.

Andrew Zezas (01:41.429)
with the average player age dropping and players aged 25 to 34 becoming one of the largest demographics. Pickleball courts and facilities are multiplying rapidly to meet the soaring demand while competitive play and major tournaments continue to grow in size and visibility. Pickleball's combination of accessibility, social engagement, and competitive opportunities helps explain why its player base and cultural footprint continue to explode.

USA Pickleball is the official national governing body of the sport. It's a not-for-profit 501c3 and is dedicated to preserving pickleball's integrity and driving its growth nationwide. The organization sanctions top tournaments, certifies equipment and facilities, trains referees, and provides educational resources. USA Pickleball also maintains the official rules to ensure fair play at all levels. Today we're joined by Keith Helmuth.

senior finance executive at USA Pickleball. Keith oversees financial controls for the company and reports on and delivers the financial results for management and USA Pickleball's board of directors. Keith's hometown is Coots, Indiana, home of the Coots Mustangs. Keith enjoys sports, which is why he's also drawn to pickleball and its great mix of competition, social aspects, and skill.

By the way, Keith will also appear in a cover story of an upcoming issue of CFO Intelligence Magazine. Today, Keith and I will discuss how finance contributes to the growth of this tremendous sport, pickleball, and the company itself, USA Pickleball. Keith, it's wonderful to have you here. Thank you so much for joining us on CFO IQ.

Keith Helmuth (03:27.508)
Andy, I'm thrilled to be here and talk all things pickleball.

Andrew Zezas (03:31.637)
So, Keith. let's jump into our conversation. Pickleball's exploding, not only here in the US, but also globally. But as CFO, I'd like to understand what are some of the challenges, the biggest challenges I hope you'll share with us that you've experienced in this very, very high-growth sports industry?

Keith Helmuth (03:53.838)
Yeah, great question, Andy. I I think for me and for us, mean, the long-term strategic planning is a challenge when your sport and industry is growing so fast. putting finances in there with a long-term plan, mean, we are actively actually working on our strategic long-term plan. I mean, up till now, we've...

mostly focused on a year over year basis to be quite honest. You know, we budget thoroughly, you know, but looking out to the future, I mean, it's like, hey, you know, what do we want to do when we grow up kind of thing. So we're working on that as we continue to mature as an organization. So I would say one thing is kind of the long term planning and then even year over year budgeting is a challenge just because things change so much.

you know, you, you, you, you start working on a budget halfway through the year for the following year. And by the end of the year, things are changing and developing. So that's a, that's a challenge, you know, and then I'd say, you know, maybe lastly, you know, industry benchmarks is tough because the, there's really not much comparison. You know, we're, in the sport, you know, we're in the industry of sports, you know, but I mean,

If you look at some of the more popular sports now, mean, if you get 10, 15 % growth in a sport, I mean, that's pretty significant, basketball, football, soccer, those things. We're experiencing 50 % or plus growth year over year. So that becomes a challenge for us in the finance department as well.

Andrew Zezas (05:44.863)
I mean, I don't know how you budget for 50 % growth. I mean, that's tremendous. So, sorry. So, Pickleball is the official, it's not for profit and it's the official governing body for pickleball in the United States. So, you're responsible for a lot of things, promoting, growing, sanctioning the sport. How does USA Pickleball make money? Where do revenues come from?

Keith Helmuth (05:51.191)
Yeah.

Keith Helmuth (06:09.378)
Yeah, good question. mean, we have really four areas of main revenues for us. So we have a membership base that continues to grow. have about a hundred and it's going to be a hundred and fifty thousand members here shortly. There's a couple of different levels of our membership that continues to grow and can touch on that later. So we have membership. We test equipment.

So on the paddle that you showed there, there's a little stamp at the bottom. If you go buy a paddle, most paddles that you buy in the stores will have that stamp on it. If you want to play in one of our tournaments, then you need to have a paddle that's tested. So that's the second area. Then we also have sponsorship partners that

Andrew Zezas (06:44.725)
you

Keith Helmuth (07:03.266)
continue to grow for us. know, there's a lot of, you had mentioned the stat earlier, you know, about the growth, you know, of the sport, but, you know, it's also growing for, you know, mainstream companies that continue to want to get involved with pickleball because they see the growth. So, you know, that's, that's another, you know, area for us. And then of course, the fourth area is just, our tournaments.

you know, which are exciting and fun and continue to grow. We have a big national tournament every year. And then we have a bunch of different regional tournaments, you know, and then we have a lot of growth happening in that area as well.

Andrew Zezas (07:46.325)
So, okay, so revenue has got a good balance. The sport is growing not just here in the US, but globally. So given that USA pickleball, USA pickleball is here in the States, how is the organization influencing growth of the sport on global basis?

Keith Helmuth (08:08.066)
Yeah, so on a global basis, there's a few areas. So we have influence with our rules. mean, most of the country's players, tournaments are following our rules, which we publish on an ongoing basis and update those. So we have a rules book and most places follow those internationally as well. We also have an influence on the equipment. Testing paddles is a big thing.

and then I would say also, I mean, we, we have a voice in the global pickleball federation, which is kind of the global, standard organization. There's a couple of them and there's like 77 countries that participate, you know, in, in that, you know, and so there's sharing of ideas and best practices and those kinds of things. So, we do have a couple of people, on, know, that are on our team that are very involved.

In fact, I talked to Justin who, he was employee one at USA Pickleball and he's very involved internationally. And so I had spoken with him just a couple of days ago and was asking him about, you know, the international growth and what's going on there. So very interesting developments happening.

Andrew Zezas (09:29.791)
So let's talk about structure. How are governance and oversight structured at USA Pickleball?

Keith Helmuth (09:36.962)
Yeah, so mean, overall, mean, we're a nonprofit officially 501 C3. you know, with nonprofits and, you know, we're held to a higher standard anyway, you know, I would say, just because that's the nature of the way it's structured with the 501 C3 and reporting and, you know, public information and all that. But I will say, you know, us specifically, I mean, our governance is very, you know, very tight and very good.

You know, we have a very strong board of directors that have a wealth of experience. And so within that structure of our board, it flows from that down to, you know, the governance of, we have several subcommittees out of the board that there's employees on that as well, along with the board. So we have a finance committee, we have a strategic planning committee, we have a marketing committee.

We have several other things related to HR and other facets, competition, many different things. So that's set up very well. So it goes from the board to subcommittees. Then we have a very strong CEO, Mike Neely, is our head of our team. And I report to him, he comes from a very strong background of nonprofits. So he's been

He's awesome and he's been very influential in helping us continue to grow and get things infrastructure in place. So it goes down to him. And then we have managers that run all of our different departments. I run the finance department and we have a marketing head. We have a competition head that kind of runs our tournaments and so on and so forth. And then from there, everybody is in charge of their budgets. And we have a good

policies and procedures in place that run our day-to-day operations.

Andrew Zezas (11:36.895)
So sounds like a rock solid structure. And it sounds like you've got a diverse group of people running your organization and on the board. And I find that interesting because you yourself have a very interesting background. You come from the small to medium high growth private company world. And coming over to a not-for-profit, it's a very interesting twist. What are some of the nuances in managing the finances for a not-for-profit company that you see?

versus what you experienced in the past.

Keith Helmuth (12:09.036)
Yeah, good question, Andy. we, so it's interesting because when I, you know, I've been on the job a few months here. and when I interviewed, you know, with, with the team and one of the, and Mike in particular, Mike Neely, one of the things that was important to him that he saw in my background was, you know, small high growth private companies. So I think he was kind of looking for that in his, you know, head of finance.

In particular, he said many times, we have a small company environment and it's important that we fit into that. So that's right up my alley. So we hit it off right away because of that. And we're able to chat about many, many things. So for me, I've come to many companies where there's maybe not a lot of things in place. And so I've had to...

set up a lot of infrastructure. Fortunately here at USA Pickleball, we had a really strong previous to me controller who retired. She had a lot of things, great things set up already. So I inherited a very already well-running finance machine here. So that was fortunate. The things that are different, I'd say day to day, it's

running a company like any other private company. I mean, we have weekly check runs. We receive payments in, we send payments out. We have monthly reporting to our board and finance committee. We close the books every month. Standard things that are controllers, CFOs do all the time and oversee that.

The nuances come with a nonprofit are just some of the terminology and then the reporting that you do. So instead of a standard tax return, you're filing a not-for-profit tax return. When we do our annual review that our CPA firm, we have an outside review done by them. If you looked at those financial statements, some of the terminology is a little different. In a private company, you have,

Keith Helmuth (14:30.605)
Income expenses, net income, and a 501c3 or nonprofit, your net income becomes termed as a net assets growth. So that's kind of the bottom line. And then lastly, I'd say for us financial geeks on the balance sheet, on a typical private company, you have owner's equity, shareholder equity.

You know, that becomes a change in net assets is kind of like the terminology there. So anyway, that's, that's some of the differences between private and 501 C3s.

Andrew Zezas (15:11.965)
and I'm sure it keeps you on your toes.

Keith Helmuth (15:15.241)
yeah, yeah for sure. You we report on our financials monthly. We like to report budget to actuals and track our differences and you know, we have managers and all of the line down our staff involved in that. So I really like the structure that's in place here.

Andrew Zezas (15:35.273)
And we spoke earlier about budgeting. mean, when you've got the kind of tremendous growth you have year over year, how do you manage that budget process?

Keith Helmuth (15:44.895)
It's a challenge, you know, and I would say, you know, it's, it's, you know, this is my first go around as we now are starting to actually in a couple of months here, we'll start to put together a budget for 2027. You know, when I came on board, you know, late last year, there was still some, there was already a budget, detailed budget put in place, you know, and I was very impressed, you know, what the team had done. I mean, you know, there's a lot of input.

a lot of details and research and explanations for justifying the budget that all go into rolling up into a final budget. our board of directors and our finance committee, I mean, ask great questions. And so we revised our budget a couple of times before we finally finished it right before the end of the year. So the challenges are,

things that are changing. know, I mean, sometimes we don't have the answers, um, you know, in, inside of our main revenue line items that could change, you know, within a couple months, you know, it's like, you know, maybe we had a main sponsor for our nationals tournament, you know, and maybe that change changes, you know, um, um, that kind of a thing. So, you know, we made some updates and then, you know, my, um,

goal is to make sure that we continue to build on a healthy long-term plan, build up a bit of a war chest so that we can make sure we're healthy and strong for the long term.

Andrew Zezas (17:27.487)
So as USA Pickleball grows and builds its membership staff, I'm sure you think the organization itself is supporting other organizations. Are there any in particular that USA Pickleball focuses more on? And are there any that you're passionate about?

Keith Helmuth (17:44.289)
Yeah, I love this question because we have a very strong team in place that we coin in our pickleball, USA Pickleball serves, you know, it's on our website and we have impact reports on there. We're all about building community through the sport of pickleball, you know, and we're very passionate about building it at a youth level, especially for, you know, maybe underprivileged youth. So we give away, we have a grant program.

And in fact, they asked for team members to serve on it and new team members. So I was jumped at the chance because I really wanted to be involved with that. I'm involved with several other charitable organizations with me and my wife. So I was happy to do that. we...

We just actually went through a round where we approved 40 grants of, you know, mostly schools under, under privilege areas. have a kind of a grading system, you know, for, for that. We want to be able to impact the most kids as possible, you know? And so we gave away, you know, 40 packages, which includes like nets, paddles, balls.

a few other things that schools can apply through our grant program. So we gave away like 40 of those packages and I think we estimated it touched the lives of like 40,000 kids through that. as a, like we have stats on that accumulating. And so we figure we've touched the lives of like 500,000.

kids and youth and you know.

Andrew Zezas (19:32.159)
So 40,000 in just one program and 500,000 overall. Wow.

Keith Helmuth (19:36.043)
Yeah, yeah, and over 40 states of our 50 states here in the US as well.

Andrew Zezas (19:41.685)
Bravo, bravo, that's tremendous. You know what, that says a lot about the organization. I'm sure it makes it a lot more enjoyable for you to be part of management there. Yeah, that's great. So with the rapid growth and the tremendous increase in membership, where does growth go from here? Where do you see the largest growth opportunities are for the sport and for the company?

Keith Helmuth (19:52.577)
Yes, for sure.

Keith Helmuth (20:08.139)
Yeah. So, you know, within those four core areas that I had mentioned is, you know, we are growing within those, you know, because we feel like those are our core competencies, you know, membership, our tournaments, equipment testing, and our partner sponsors. So within that, you know, our growth is really focused, first of all, on, I mean, the youth side of the growth of pickleball is unbelievable.

So we're very involved like with college and high school programs all the way down to younger kids. that's, mean, you had mentioned the stat when we started, I think, of the age of average age, it continues to go down because so many young kids are playing it. So we have somebody, a new team member that's just focused on college. So she goes out and there's lot more colleges sanctioning.

pickleball as a sport. You know, that's important. High schools, tournaments, in fact, in our regional and national tournaments, we have a huge amount of youth playing in those now, you know, which is awesome to see. So I'd say, you know, within like that, we have youth growing. So that's a big focus for us. The other thing that's exploding and is really within both our touches, both our membership and our tournaments is league play.

I mean, there are so many cities and places, you know, probably in your town and definitely here in Phoenix, Scottsdale. I mean, there's leaks, you know, going on everywhere. So that's getting added. And so, you know, that's something we're very involved with and is a big growth area. then in our equipment testing area, we're starting to, you I'm sure you see it and I see it. There's so many facilities getting, you know, built new facilities.

that are coming online all the time. So now we're getting asked to like, can you come and review our courts and our facility and our lighting and our nets and all those things. So that's part of equipment testing, but that's a new area of growth that we haven't seen before. And then finally, I'd say in our sponsor partner area, I you're seeing a lot more mainstream bigger companies

Keith Helmuth (22:34.317)
come down into the sport. mean, you know, like names like, you know, Skechers, I mean, they're a sponsor of ours. I mean, they, came on the scene doing pickleball shoes and other things, you know, not, you know, maybe two years ago, you know, Tommy Bahama is a big, you know, they, jumped in the space, you know, and they're a big sponsor of ours. So, you even like Sandals resorts, I mean, they, you know, they have pickleball courts now at most of the resorts and they're a sponsor of ours. So that's another area.

Andrew Zezas (23:05.041)
All right, so there's one question I've been dying to ask you. When a sport takes off like this, which doesn't really happen very often, it becomes as popular as pickleball has become, not just here in US, but globally. The question that I'm sure a lot of people are asking is, is pickleball coming to the Olympics? And if so, what does that do for the sport worldwide?

Keith Helmuth (23:33.037)
Yeah, you know, we get asked that a lot. And the answer is, know, we don't for sure know. I mean, we are involved and, you know, we obviously want it to be in the Olympics. You know, it's possible it could be in the Olympics by 2032. Definitely not 2028. You know, it's possible, you know, out another four years after that. The challenge, you know, there's

a couple of challenges for it to become really a fully fledged Olympics for, know, it's growing crazy and it's growing internationally, but internationally has not yet caught up to where we're at in the States. So, you know, while there's like 77 countries in the global pickleball federation, some of those are very small, you know, you know, with not, you know,

They're growing faster than the U S but it's going to take some time for them to catch up. And the other thing is, you know, probably 90 % maybe more of the best players in the world are all in the United States. So I think, you know, while it's growing more rapidly overseas in most countries, even faster than it is now they're behind, they'll catch up and there's more and more international players, you know, playing in our tournaments and all the

professional level, but it's going to take a little bit of time for that to happen. know, 2032 is still several years away, so I can see it happening there, but it's anybody's guess at this point.

Andrew Zezas (25:11.199)
That would be very cool. So I guess my last couple of questions are, how often do you play pickleball?

Keith Helmuth (25:19.213)
yes. You know, I'd like to say I'm, you know, I'm the best player in Arizona, but you know, it's, you know, I play recreationally and play with a group of weekend warriors, you know, we're competitive, we're all about the same level, you know, so that's a lot of fun. I do play with my wife with some couples, friends of ours, which is a good, a good time. So she likes to play. And so

We have fun there. It's a cool thing about pickleball. mean, you you can find as much competition as you want and you and it's such a social sport too, you know, so it's a it's a really good good time. And then, you know, we do play some at the company too. And I would say, you know, most people play at the company at some level, you know, there's some there's some that are really good. And, you know, we have others that play casually. So I'd say

Everybody has played some, you know, and some more than others. We started to have some more company events where we're playing, which is a lot of fun. We had a Christmas holiday party where we played. We had a couple of courts at a local place and that was a lot of fun.

Andrew Zezas (26:37.141)
is proficiency and pickleball part of the job description for someone who wants to come work for the company.

Keith Helmuth (26:44.173)
Yeah, you know, it's funny because when I interviewed with the company, they're like, you don't have to play pickleball. I'm like, well, I do. So, you know, it's good. Just don't, you know, don't hire me based on, know, how good I am. That's all I ask.

Andrew Zezas (26:58.081)
I'm a finance guy. not a pickleball pro. Keith, this has been a lot of fun. I really appreciate you joining us today and sharing your thoughts, not only on finance and growth, but on the pickleball sport as well. It's been wonderful having you here.

Keith Helmuth (27:15.819)
I appreciate it, Andy. I was really thrilled that I got asked for the opportunity and it's been a blast.

Andrew Zezas (27:22.131)
Well, it's been great and we're looking forward to seeing your cover story come out in CFO Intelligence Magazine. So thanks again, Keith. I really appreciate you joining us.

Keith Helmuth (27:31.245)
Thank you.

Andrew Zezas (27:33.063)
Ladies and gentlemen, thank you very much for joining us here on CFO IQ. You're listening to Keith Helmuth, the Senior Finance Executive at USA Pickleball. If you'd like to learn more about Keith, visit USA Pickleball online or visit us here at CFOIQ.com. If you're a CFO at a great company and you'd like to share your insights as to how finance drives growth at your company and you'd like to appear in a CFO IQ on-camera interview,

Or if you're interested in appearing in a CFO Intelligence Magazine story, contact me directly at andrew.zizis at cfointel with two L's dot com. This has been a CFO IQ on camera interview. I'm Andrew Zizis. I'm going to enjoy the rest of my pickle and I want to thank you very much for joining us today.

Andrew Zezas (28:28.797)
Okay, now we're out.

What do you think, Keith?

Keith Helmuth (28:32.986)
That was great. I thought it went well. How do you think it went?

Andrew Zezas (28:36.425)
Say again, you love what?

Keith Helmuth (28:37.953)
I said

Andrew Zezas (00:00.000)
This is CFO IQ. Hi, I’m Andy Zezas, host of CFO IQ, publisher of CFO Intelligence Magazine, and Chief Strategist and CEO at Real Estate Strategies Corporation.

Here on CFO IQ, we talk with forward-thinking CFOs from exciting enterprise and middle market companies, as well as highly accomplished subject matter experts. Our goal is to bring you experience-based intelligence and insights to help you acquire, understand, and use knowledge to become a more successful CFO and increase your CFO IQ.

Welcome to CFO IQ. We’re glad you’re here.

---

Andrew Zezas (00:40.000)
Hello everyone, welcome to CFO IQ. I’m your host, Andy Zezas. On today’s show, I’m joined by an impressive finance executive with a very diverse background.

Joining me today is Dan Crumb, Executive Vice President and CFO of the Kansas City Chiefs. Today, Dan and I will discuss how the Chiefs plan to build on a successful track record.

Dan, welcome to CFO IQ. It’s great to see you again.

---

Dan Crumb (01:05.000)
Thank you, Andy, for having me. It’s a pleasure to be here and to join your show again.

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Andrew Zezas (01:12.000)
Let’s talk about building on a successful track record. The Chiefs have had tremendous success—multiple Super Bowl wins, a phenomenal team, coaching staff, and finance organization.

---

Dan Crumb (01:25.000)
I’m very fortunate to have a great team. We do some really special things here, and without the people, we don’t get it done. We’ve been truly blessed both on and off the field over the past few years. It’s been a great run, and we want to continue it. It takes everyone pulling in the same direction.

---

Andrew Zezas (01:50.000)
Your fan base is incredibly loyal—one of the most loyal in the league.

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Dan Crumb (01:58.000)
Absolutely. One of the most rewarding aspects of our success is being able to reward our fans. They’ve been loyal for over 60 years, and it’s important for us to give them something they’re proud of—a real source of joy for the entire region.

---

Andrew Zezas (02:20.000)
The fan experience is evolving at Arrowhead Stadium. Talk to me about innovations like cashless transactions, Wi-Fi upgrades, and emerging technologies.

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Dan Crumb (02:35.000)
We’ve made significant investments in enhancing the fan experience. We’re a completely cashless building—from parking to concessions to merchandise. That improves convenience and speed.

We also upgrade our Wi-Fi systems every few years to ensure fans stay connected. Today’s fans expect to upload photos, check stats, and stay engaged in real time. Connectivity is now a critical part of the experience.

---

Andrew Zezas (03:15.000)
Not only that they were there—but that they are there.

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Dan Crumb (03:18.000)
Exactly. That they are there. So we continuously reinvest in technology to meet those expectations.

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Andrew Zezas (03:25.000)
Beyond technology, how are you enhancing the overall game-day experience?

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Dan Crumb (03:32.000)
We focus on getting fans into the stadium early and creating a memorable experience. We’ve built a tailgate district with food, music, and entertainment. We also introduced tailgate suites that include indoor and outdoor spaces.

During playoffs, we bring in live entertainment—artists like Nelly and Lil Jon—to elevate the experience even further.

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Andrew Zezas (04:10.000)
That sounds incredible. But all of this requires significant investment. How do you fund these initiatives?

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Dan Crumb (04:18.000)
We are very planning-oriented. We map out projects years in advance and try to fund them through operations. We prefer to avoid debt when possible and focus on saving and reinvesting cash flow.

For larger projects, we may use league financing programs, which provide favorable interest rates. It’s all about disciplined financial planning.

---

Andrew Zezas (04:55.000)
Let’s talk about revenue. The Chiefs generate income from multiple streams—media rights, sponsorships, and ticket sales. How is that evolving?

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Dan Crumb (05:05.000)
We’re seeing a shift toward streaming and international expansion. Traditional TV deals are locked in, but streaming opens up a global audience of nearly 8 billion people.

By playing games internationally, we build new markets and create opportunities for future revenue growth across the league.

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Andrew Zezas (05:40.000)
Ticket prices have increased across the league. How do you balance that with fan satisfaction?

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Dan Crumb (05:48.000)
It comes down to value. If fans feel they’re getting a better experience—better facilities, entertainment, and engagement—they’re willing to pay more.

We’ve also implemented dynamic pricing, similar to airlines, to better align ticket prices with demand.

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Andrew Zezas (06:15.000)
What about emerging technologies like blockchain, NFTs, and AI?

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Dan Crumb (06:22.000)
We experimented with NFTs, but didn’t see strong demand. Blockchain is something we’re monitoring, but it hasn’t scaled to our needs yet.

AI, however, is very impactful. For example, our photography team captures around 100,000 images per game. AI helps automatically identify players and tag photos, saving significant time and effort.

---

Andrew Zezas (06:55.000)
That’s a powerful use case. Let’s talk about talent. How do you build and retain the right team?

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Dan Crumb (07:02.000)
We focus on creating a culture of growth and opportunity. We recruit from strong pipelines and invest in development.

We’ve had employees start as interns and grow into leadership roles. We also support continued education, including MBAs and law degrees. Our goal is to create an environment where people can learn, grow, and succeed.

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Andrew Zezas (07:40.000)
Dan, this has been a fantastic conversation. Thank you for joining us today.

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Dan Crumb (07:45.000)
Thank you, Andy. It’s been a real pleasure.

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Andrew Zezas (07:50.000)
And to our audience, thank you for joining us on CFO IQ. If you’d like to learn more about Dan Crumb or the Kansas City Chiefs, visit their official website or head to CFOIQ.com.

We’ll see you again soon on CFO IQ.

---

Outro (08:05.000)
This has been a production of CFO IQ. If you have topic suggestions or would like to be considered for an interview, contact Andrew Zezas.

Andrew Zezas (00:00.000)
A brand is a name, term, design, or symbol that identifies a seller’s goods or services and distinguishes them from competitors.

The functions of branding include developing a unique identity, creating trust, fostering customer loyalty, and creating or storing value. The best companies—the best brands—understand this. Brands give businesses a unique voice and identity. Branding builds credibility, fosters customer loyalty over time, and creates value for companies, their products, shareholders, and consumers.

Welcome to CFO IQ, where CFOs share insights and intelligence on innovative growth strategies and the experiences that drive success for their companies and themselves. I’m your host, Andy Zezas, and I’m happy to be with you today.

---

Andrew Zezas (01:05.000)
The world’s biggest brands by value are dominated by technology companies—those you would expect: Apple, Google, Microsoft, Amazon, and Nvidia. They consistently hold top positions in global rankings.

Other major global brands span industries from retail to automotive and finance.

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Andrew Zezas (01:35.000)
Major consulting firms release annual rankings based on brand value, which combines financial performance, brand strength, and the brand’s influence on consumer choice.

While the technology sector currently leads brand rankings, other major brands lead specific industries globally—especially those in luxury goods and consumer categories.

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Andrew Zezas (02:05.000)
Today, we’re joined by Virginia Costa, a global CFO whose career has been focused on some of the most recognizable luxury brands in the world.

Virginia has served as CFO for companies such as Wella, Godiva, Burberry, Mondelez International, and Hermès.

Virginia, I’m so glad you’re here to share your perspectives with our CFO IQ audience. Thank you for being with us today.

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Virginia Costa (02:40.000)
Thank you, Andy. It’s a pleasure to be here. As you said, I’ve spent my career focusing on brands and branding—understanding what brand value means and how you can combine emotion, discipline, and financial rigor to build enduring brands.

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Andrew Zezas (03:00.000)
Emotion and financial rigor—I love that.

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Andrew Zezas (03:05.000)
Let’s talk about brand. You were at Burberry, where you were instrumental in repositioning the brand from aspirational to luxury.

What does that mean?

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Virginia Costa (03:20.000)
It means that when you have strong brand equity but lack consistency, you create aspiration—but not full luxury positioning.

For example, too many promotions or over-reliance on wholesale channels can dilute consistency. As a CFO, your role is to ensure that transformation is financially sustainable.

At Burberry, we reduced wholesale exposure, limited promotions, and increased full-price sales. We also invested in customer experience—both physical and digital.

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Virginia Costa (03:55.000)
From a metrics standpoint, we tracked:

• Gross margin expansion
• Reduction in markdowns
• Full-price sell-through
• Brand awareness and net promoter score
• Social and digital engagement

Consistency is key when moving from aspirational to luxury.

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Andrew Zezas (04:25.000)
So those metrics determine whether repositioning succeeds or fails?

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Virginia Costa (04:30.000)
Exactly. If margins improve and markdowns decrease, you see ROI. If not, you adjust strategy.

---

Andrew Zezas (04:45.000)
Let’s talk about real estate. You’ve said it’s about experience, not just location—especially at Hermès.

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Virginia Costa (04:55.000)
Absolutely. Today, digital presence is also “real estate.” Your website must convey the same brand values as your physical stores.

When expanding Hermès stores, we considered:

• Store size
• Location and adjacency
• Brand alignment
• ROI thresholds

We said “no” to locations that didn’t meet brand or financial criteria.

---

Andrew Zezas (05:40.000)
You’ve worked with very different brands like Hermès and Godiva. How do you protect brand equity across such different models?

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Virginia Costa (05:50.000)
Hermès focuses on exclusivity and scarcity. Godiva focuses on indulgence and accessibility.

So the metrics differ:

• Hermès → margin expansion, exclusivity
• Godiva → velocity, repeat purchases, seasonal demand

But both require strong brand storytelling and consistency.

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Andrew Zezas (06:25.000)
What about risks like counterfeiting and overdistribution?

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Virginia Costa (06:30.000)
Overdistribution is a major risk—it dilutes brand value.

We set guardrails:

• Limits on wholesale revenue
• Controlled outlet exposure
• Monitoring sell-in vs sell-out

Brand damage shows up as margin compression and increased promotions.

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Andrew Zezas (07:05.000)
What’s one thing CFOs should understand about brand building that doesn’t show up in financials?

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Virginia Costa (07:10.000)
Emotion.

Emotion drives future cash flow, but it’s not captured directly in financial statements.

CFOs must act as brand stewards—experience the product, visit stores, and understand the customer journey.

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Andrew Zezas (07:35.000)
Let’s talk about brand equity measurement.

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Virginia Costa (07:40.000)
You need a dashboard combining:

• Financial metrics (sales, profit)
• Brand metrics (brand score)
• Customer metrics (engagement, loyalty)

When you see all of these together, you understand true value creation.

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Andrew Zezas (08:10.000)
You’ve worked across luxury and mass-market brands like Oreo under Mondelez International. How does the approach differ?

---

Virginia Costa (08:20.000)
Luxury focuses on scarcity and storytelling.
Mass market focuses on scale, affordability, and market share.

But both require:

• Data discipline
• Brand consistency
• Strong understanding of brand DNA

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Andrew Zezas (08:50.000)
What are warning signs that brand investments are failing?

---

Virginia Costa (08:55.000)
Key warning signs include:

• Declining traffic
• Flat or declining margins
• Customer resistance to price increases

That’s why focused dashboards are critical—you can identify issues early and adjust strategy.

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Andrew Zezas (09:25.000)
This has been an incredible conversation. Thank you for sharing your insights.

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Virginia Costa (09:30.000)
Thank you, Andy. It was a pleasure. I truly believe finance, creativity, and emotion can work together to create sustainable value.

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Andrew Zezas (09:40.000)
And you’ve proven that time and again. Thank you for being here.

---

Andrew Zezas (09:45.000)
Ladies and gentlemen, thank you for joining us on CFO IQ. If you’d like to learn more about Virginia Costa, visit CFOIQ.com.

Join us again for our next episode. I’m Andrew Zezas—keep thinking.

Andrew Zezas (00:00.000)
[music]

In our last CFO IQ interview, I talked with a global finance executive who shared how a certain industry spreads its wings. I'm glad you're here today because in this interview, you'll hear from a global CFO who’s, bittersweet—maybe even semi-sweet—about how finance is successfully deployed as an engine for growth.

Welcome to CFO IQ, where CFOs share insights and intelligence on innovative growth strategies and the experiences that drive success for their companies and themselves. I'm your host, Andy Zezas.

On today's show, I'm joined by a friend and executive who has served as CEO, COO, and CFO in marquee consumer products, food, and luxury brands, including Gillette, Procter & Gamble, Nestlé, Timex, and Hunter Douglas. Now serving as CEO of Astra Chocolate, Gary Piscatelli has earned a reputation as a transformational and pragmatic leader.

Astra Chocolate sells—well, you guessed it—chocolate. The global confectionery industry is driven by rising disposable incomes, urbanization, and innovation. The market was valued at approximately $269 billion in 2024 and is projected to reach around $468 billion by 2034, with a CAGR of 5.7%.

While Gary’s views on business are sometimes sweet—and unlike my favorite chocolate, rarely dark—he’s not here today to talk about chocolate. He’s here to share his perspective on finance as an engine for growth.

Gary, I hope you don’t mind the chocolate puns. I’m glad you’re here today.

---

Gary Piscatelli (02:10.000)
No, the puns are great. Thanks for having me. Chocolate is an interesting business—and I guess one thing I’ve never been called is sweet. So thank you.

---

Andrew Zezas (02:22.000)
Well, it’s either sweet or salty—I figured I’d go with sweet.

So Gary, let’s talk growth. Is driving growth really the CFO’s role?

---

Gary Piscatelli (02:35.000)
If a CFO steps back and thinks about it, their role is to protect and enhance the financial interests of the company. One of the best ways to do that is to grow.

Most traditional CFO work is reporting, controls, forecasting—holding people accountable. And often, value is pursued through cost reduction.

But a company growing profits through revenue growth is more valuable than one growing through cost-cutting. Cost reduction has limits. Growth is theoretically unlimited.

So if your role is to enhance value—how can you not focus on growth?

---

Andrew Zezas (03:25.000)
Then why do some CFOs shy away from that responsibility?

---

Gary Piscatelli (03:32.000)
It comes down to fear.

CFOs are often trained as accountants, told to stay in their lane. They’re sometimes labeled “bean counters.” That shapes behavior.

There’s also personality—many CFOs are more introspective, less likely to push back. And then there’s inexperience—they’re not taught how to drive growth.

So fear, inexperience, and peer dynamics stop them.

---

Andrew Zezas (04:20.000)
That old-school mindset—focusing on yesterday instead of tomorrow.

---

Gary Piscatelli (04:25.000)
Exactly. And many executives don’t clearly communicate what they want from finance. They say they want strategic partners—but often just want strong planners.

That mismatch creates hesitation.

---

Andrew Zezas (04:50.000)
You’ve mentored a lot of people. How do you encourage finance teams to drive growth?

---

Gary Piscatelli (05:00.000)
First, identify potential—communication, analytical skills, curiosity.

Then push them out of their comfort zone. Most say, “That’s not me.” I tell them, “You just haven’t tried.”

You have to create safety. If they fail—it’s on me.

Then create opportunities and remove barriers. Build trust with peers so finance can contribute.

And once you succeed once—you earn permission to do it again.

---

Andrew Zezas (06:30.000)
Does finance approach growth differently than other departments?

---

Gary Piscatelli (06:35.000)
Yes and no.

Finance influences growth through capital investment, pricing, incentives, forecasting. That’s not different.

What’s different is mindset.

Some finance people focus on why something won’t work instead of how to make it work. That’s where the “CF-No” reputation comes from.

You need to balance risk—but also support smart opportunities, even when data isn’t perfect.

---

Andrew Zezas (07:50.000)
You’ve used the term “organizational white space.” What does that mean?

---

Gary Piscatelli (07:55.000)
White space is opportunity no one is working on.

The CFO sees everything—connects numbers to operations. If they can’t spot missed opportunities, who can?

Start by offering help. If others don’t act—you step in.

One success builds credibility. Then people start asking for your help.

---

Andrew Zezas (09:00.000)
Can everyone in a company drive growth?

---

Gary Piscatelli (09:05.000)
No.

Some people don’t have the DNA—curiosity, communication, analytical rigor.

But they can still contribute—even if they can’t lead.

---

Andrew Zezas (09:40.000)
You’ve gone from CFO to CEO. What’s different?

---

Gary Piscatelli (09:45.000)
Biggest difference—bandwidth and responsibility.

As a CFO, you choose where to engage. As CEO, everything is your responsibility.

Also—authority. As CEO, you can move faster.

For example, we launched a new product in months because we didn’t wait—we acted.

That speed is harder as a CFO.

---

Andrew Zezas (11:15.000)
What advice would you give CFOs who want to make a bigger impact?

---

Gary Piscatelli (11:20.000)
First—pick the right boss.

If your CEO keeps you in a box, it’s hard to grow.

Second—have courage. Try.

Start small. Deliver wins. Build credibility.

Success leads to more opportunities.

---

Andrew Zezas (12:10.000)
You’ve been involved with CFO Intelligence. How has that helped you?

---

Gary Piscatelli (12:15.000)
The biggest value is networking with smart people.

You learn what others are doing—and not doing. It helps you reflect and improve.

That’s why I participate.

---

Andrew Zezas (12:45.000)
Gary, thank you. Always a pleasure speaking with you.

---

Gary Piscatelli (12:50.000)
Thank you. I appreciate the opportunity.

---

Andrew Zezas (12:55.000)
Ladies and gentlemen, thank you for joining us on CFO IQ.

If you’d like to learn more about Gary Piscatelli, visit our website at cfoiq.com.

If you’d like to be considered for an interview or suggest topics, email me at andrew.zesus@cfointel.com.

Join us again for our next interview. I’m Andrew Zezas—keep thinking.

”

Andrew Zezas (00:00.000)
This is CFO IQ. Hi, I'm Andy Zesus, host of CFO IQ, publisher of CFO Intelligence Magazine, and chief strategist and CEO at Real Estate Strategies Corporation.

Here on CFO IQ, we talk with forward- thinking CFOs from exciting enterprise and middle market companies, as well as some highly accomplished subject matter experts.

Our goal is to bring you experience- based intelligence and the insights of highly accomplished CFOs and others to help you acquire, understand, and use knowledge, make you a more successful CFO, and increase your CFO IQ.

Welcome to CFO IQ. We're glad you're here.

---

Andrew Zezas (01:10.000)
Hi, and welcome to CFO IQ. I'm your host,
Andy Zizus.

Unless you've been asleep for the last
few weeks, you're likely quite aware
that there's a trade war happening
between the US and a number of countries.

If you're a CFO whose company could be
affected by tariffs, either directly or
indirectly, I'm sure you're spending a
lot of time working to figure out the
financial and other effects those
tariffs will bring.

In an effort to achieve parity, the US
has created tariffs on goods and
services imported into this country from
a number of other countries.

Some of those tariffs are quite
substantial and will affect companies
large and small, and consumers as well.

How will they affect your company and
how should your company prepare?

Well, you'll need to know what actions
you should take now to preserve margins
and protect profitability.

Stick around and find out.

---

Andrew Zezas (02:40.000)
On today's show, I'm joined by Travis
and Dean Peterson from the national
accounting and business services firm
Eisner Amper.

I've asked Travis and Dean to join me
today to share their insights on what
companies should do in response to newly
imposed tariffs.

Let me give you some background first.

Eisner Amper is one of the largest
accounting, tax, and business advisory
firms in the US.

Large enterprises, privately owned
companies, and high net-worth
individuals turn to Eisner Amper for
comprehensive audit, advisory,
consulting, and tax services, as well as
smart analytical insights.

---

Andrew Zezas (03:50.000)
Our guest today, Travis, is an audit
partner, partner in charge of
manufacturing and distribution.

Travis has nearly 30 years of experience
in public practice and private industry.

His experience includes public and
private industry and helps him give
value-added service to his clients
related to operating issues, internal
controls, profitability, and business
planning.

After spending nearly 10 years at a Big
Four accounting firm, Travis assumed the
role of senior financial officer at a
family enterprise that controlled a
number of public and private companies
in a variety of industries.

In this capacity, Travis was the
certifying financial officer for two
publicly traded companies. He also
regularly presented to audit committees
and executive boards.

Travis's unique background provides him
with an understanding of the audit
process from both the client and advisor
perspective.

---

Andrew Zezas (05:20.000)
Let me also introduce Dean Peterson.

Dean is the partner in charge of Eisner's
international tax services group.

With more than 20 years of experience,
Dean delivers comprehensive tax
consulting and compliance solutions to
privately and publicly held companies
across many industries, from startups
to Fortune 100, and he does so worldwide.

He advises clients on cross-border
transactions, international tax
planning, tax treaty matters,
international taxation of financial
services entities, IP migration, and
tax-efficient structuring across
multiple jurisdictions.

Dean is one of the firm's global
liaisons and maintains a strong network
of global contacts.

Prior to joining Eisner Advisory Group,
Dean was a principal at a top 10
accounting firm in its international tax
services group, where he worked with
financial services, technology, and
cryptocurrency companies on M&A, foreign
tax credit optimization, and US
international tax compliance.

His early experience includes working
with large technology and insurance
companies.

---

Andrew Zezas (07:10.000)
Travis and Dean, I want to welcome you
both to CFO IQ.

---

Guest (07:15.000)
Thanks for inviting us, Andy. It's great
to be here.

Andy, thank you very much. It's a
pleasure to join you on CFO IQ to talk
about this very interesting topic today.

---

Andrew Zezas (07:30.000)
Well, thanks so much, guys. This is a
hot one, so why don't we jump into it?

Tariffs are very complex for a lot of
companies these days. So before we get
started, let's talk about the
differences between tariffs and
international taxes.

Andrew Zezas (00:00.000)
[music]

It used to be that every entertainer had to know how to sing, tap dance, and juggle. These days, that last skill—juggling—has become a prerequisite for many executives, especially those with global responsibilities in fast-paced industries.

Stay with us today and you’ll hear the insights of a fascinating global life sciences and finance executive, where juggling is certainly not her only expertise.

---

Andrew Zezas (00:28.000)
Welcome to CFO IQ, where CFOs share insights and intelligence on innovative growth strategies and the experiences that drive success for their companies and themselves.

I’m your host, Andy Zezas.

---

Andrew Zezas (00:45.000)
On today’s show, I’m joined by a long-term friend and impressive global business and finance executive, Mila Tartikovski.

Mila is Head of U.S. Finance and Global Oncology Finance at Daiichi Sankyo. In her role, she is responsible for evaluating operating performance, focusing on profitable growth, and supporting the company’s long-term strategic vision.

She leads a team of finance business partners supporting oncology operations across Europe and the U.S., and oversees the broader financial affairs of the organization in the United States.

---

Andrew Zezas (01:25.000)
At a recent CFO Intelligence gathering, Mila led a discussion titled “Sustaining High Performance: Balancing a Global Career, Leadership, Family, and Life.” Today, she’s here to share her insights.

Mila, it’s always so nice to speak with you. I’m glad you could join us. Good morning.

---

Mila Tartikovski (01:45.000)
Good morning, Andy, and thank you for having me. It’s truly a pleasure.

---

Andrew Zezas (01:52.000)
It’s always great to see you. Let’s talk about your journey. You’ve led global initiatives while raising a family and supporting some major personal milestones.

Walk us through your background and what last year looked like for you.

---

Mila Tartikovski (02:10.000)
Thank you, Andy. As you mentioned, I lead U.S. Finance for Daiichi Sankyo, a Japanese pharmaceutical company known for its oncology portfolio.

My role includes FP&A, business partnering, accounting, tax, treasury, as well as procurement, meetings, travel, and events.

At the same time, our company has been undergoing a major transformation, including globalization initiatives and implementing a global ERP system. That meant shifting from a U.S.-focused mindset to a global perspective—building relationships and traveling extensively across Europe and Japan.

---

Mila Tartikovski (02:55.000)
On the personal side, it was also a very intense year. I have two daughters, and my younger daughter qualified for the 2024 Paris Olympics, representing the United States in saber fencing.

---

Andrew Zezas (03:10.000)
That must have been incredibly exciting—and nerve-wracking.

---

Mila Tartikovski (03:15.000)
Absolutely. It was both. Being there at the Olympics was amazing, but the journey to get there was just as challenging.

My husband and I traveled extensively to support her—across Europe, Asia, and the U.S.—while balancing my professional responsibilities.

---

Andrew Zezas (03:40.000)
And that wasn’t all—you also had another major milestone.

---

Mila Tartikovski (03:45.000)
Yes, my older daughter planned her wedding just weeks after the Olympics—in France. We hosted a 300-guest destination wedding.

---

Andrew Zezas (03:55.000)
Wow. That’s a year to remember.

---

Mila Tartikovski (04:00.000)
Definitely a year to remember.

---

Andrew Zezas (04:05.000)
From the outside, it looks like you balanced everything seamlessly. What was happening behind the scenes?

---

Mila Tartikovski (04:12.000)
It wasn’t glamorous. It was a lot of juggling.

I had to lean heavily on my support network—my team at work and my family at home. There were emotional moments, unexpected challenges, and constant decision-making.

I relied on my team, empowered them to make decisions, and focused on providing guidance and vision rather than being involved in everything.

---

Andrew Zezas (04:50.000)
It sounds like strong leadership played a big role. How has your leadership style evolved?

---

Mila Tartikovski (05:00.000)
Early in my career, I thought leadership meant having all the answers and controlling every decision.

Over time, I realized that was micromanagement. True leadership is about empowering others, allowing them to grow, and trusting them to lead.

Interestingly, my leadership style evolved alongside my role as a parent. Both require guidance, trust, and allowing others to learn from mistakes.

---

Andrew Zezas (05:40.000)
You’ve used the phrase “coaching from the sidelines.” What does that mean?

---

Mila Tartikovski (05:48.000)
It means being present without being in the middle of everything.

Like supporting my daughter in fencing—I’m not on the strip with her, but I’m there to guide and encourage. The same applies at work. I support my team, ask questions, and help them think through decisions, but I let them lead.

---

Andrew Zezas (06:20.000)
Let’s talk about high performance. How do you define it in today’s environment?

---

Mila Tartikovski (06:28.000)
High performance today is about resilience, continuous learning, and taking calculated risks.

We never have all the information, so it’s important to make decisions, learn from them, and adjust. Creating psychological safety is key—people need to feel comfortable making decisions, even if they’re not perfect.

---

Andrew Zezas (07:00.000)
How do you stay connected across cultures and time zones?

---

Mila Tartikovski (07:05.000)
Technology helps bridge time zones, but cultural differences are the real challenge.

We’ve learned to slow down, communicate clearly, and create space for everyone to contribute—especially in global teams where communication styles differ.

---

Andrew Zezas (07:35.000)
You’ve also mentioned compassion and forgiveness as part of leadership. Tell me more.

---

Mila Tartikovski (07:42.000)
Compassion means approaching every interaction with positive intent and asking, “How can I help?”

It also means being kind to yourself and your team—accepting that perfection isn’t always possible and learning from mistakes.

---

Andrew Zezas (08:10.000)
That’s powerful. Let me ask you one final question—what advice would you give to someone trying to balance it all?

---

Mila Tartikovski (08:18.000)
It’s okay not to be perfect.

Build a strong support network, trust others, and allow flexibility. Sometimes 80% is good enough.

---

Andrew Zezas (08:30.000)
That’s a great note to end on—leadership, coaching, compassion, forgiveness, and high performance.

Mila, thank you so much for sharing your insights today.

---

Mila Tartikovski (08:40.000)
Thank you, Andy. It’s been a pleasure.

---

Andrew Zezas (08:45.000)
And thank you to our audience for joining us today on CFO IQ. If you’d like to learn more about Mila Tartikovski, visit CFOIQ.com.

Join us again for our next episode.

---

Outro (09:00.000)
[music]

[music]

In our last CFO IQ interview, I spoke with a global finance executive who shared how juggling is an essential part of the CFO role.

Stay with us today, because in this interview, you’ll hear why understanding when an industry “spreads its wings” is just as important as how CFOs juggle competing priorities.

Welcome to CFO IQ, where CFOs share insights and intelligence on innovative growth strategies and the experiences that drive success—for their companies and themselves.

I’m your host, Andy Zesus.

On today’s show, I’m joined by a longtime friend and an impressive global aviation business and finance executive, Claude Jay.

Claude is the founder of Avian Guard, a problem-solving consulting firm that provides tailored financial solutions to aviation companies, including strategic planning, FP&A, aircraft financing, market analysis, and organizational structuring.

Avian Guard is also a partner of Halo Aircraft Leasing and High Altitude Partners.

Before founding Avian Guard, Claude served as CFO at Honda Aircraft, Dassault Falcon Jet, and several other leading organizations.

In 2024, the U.S. aerospace industry—including defense—generated $995 billion in sales, up 4.2% from the previous year, supported by approximately 1,400 companies nationwide.

You’re going to enjoy today’s discussion—I’m certain of it—and you’ll especially appreciate Claude’s Brooklyn accent.

Claude, it’s great to have you here. Thank you for joining us and sharing your perspectives with the CFO IQ audience.

Thank you, Andy. Always a pleasure to be part of anything you’re doing.

Wait a second—I thought today was going to be a full-service interview. Where’s your guitar?

It’s right here—literally right next to me.

Alright, we’ll leave it there for now. Let’s get into it.

Let’s talk aerospace—specifically international trade, tariffs, and then maybe supply chain and technology.

Explain to our audience why international trade is so critical to the aerospace industry today.

When you look at aerospace, no single country can do everything required to build an airplane—design, engineering, manufacturing, electronics, software—everything is globally distributed.

And honestly, it’s always been that way.

Think about the Wright brothers. After their first flight in North Carolina, they didn’t just stay in Ohio—they went to Europe and North Africa to sell airplanes.

Aerospace has been international since the beginning, and it still is.

And at the end of the day, airplanes fly—they don’t care about borders.

That’s a great point.

So how does international trade affect aerospace differently than other industries?

Because everything in aerospace is interconnected globally—supply chain, knowledge, customers.

Take Gulfstream Aerospace—about 40% of its revenue comes from exports.

Or Boeing—the launch customer for the 777 was not a U.S. airline.

In fact, about 30–40% of a Boeing 777 comes from outside the U.S., with roughly 20% from Japan alone.

Boeing is essentially assembling components sourced globally.

So it’s not just manufacturing—it’s design, engineering, assembly, and global integration.

Exactly.

And even in services—maintenance, repairs, parts exchange—everything is international.

A component might be removed in one country, repaired in another, and shipped to a third.

That complexity defines aerospace.

So with all that, how does aerospace affect the trade deficit?

Interestingly, aerospace is actually a surplus industry.

We export more than we import.

The reason? The U.S. controls the intellectual property—the IP.

That’s where the real value lies.

If you control the IP, you control pricing, distribution, and value creation.

That’s fascinating.

Now let’s talk tariffs—one of the biggest global topics today.

How are tariffs affecting aerospace manufacturers?

It’s extremely complex.

At first glance, you might think: Boeing = U.S. product, Airbus = European product.

But reality is much more complicated.

Every aircraft is made up of parts from multiple countries.

So companies are now analyzing their entire bill of materials—down to level four, five, even six—to determine what portion qualifies as “U.S. content.”

That determines how tariffs are applied.

It’s incredibly detailed and resource-intensive.

And how does that impact airlines?

Airlines are adapting.

Instead of buying aircraft outright, many are leasing them.

The leasing company absorbs the tariff and spreads it over time through lease payments.

That ultimately increases ticket prices—but gradually.

So consumers feel it slowly.

Exactly.

It’s not immediate inflation—it’s progressive.

What strategies are companies using to deal with tariffs?

Initially, many absorbed the cost to protect margins.

But that wasn’t sustainable.

Now, most companies are passing costs along the supply chain.

Some are adjusting pricing. Others are restructuring sourcing.

Everyone is adapting—but no one is immune.

Do tariffs encourage companies to move manufacturing to the U.S.?

Not really—at least not quickly.

Developing an aircraft takes years.

You don’t relocate production based on short-term policy changes.

There are also regulatory challenges—FAA approvals, certifications—which can take years.

So while tariffs may influence long-term decisions, they’re not an immediate driver of relocation.

What about supply chain challenges?

Supply chain is a bigger issue than tariffs.

The conflict in Ukraine disrupted access to critical materials like titanium and aluminum.

Add to that workforce shortages—many experienced workers retired during COVID—and now companies are struggling to rebuild expertise.

It’s a perfect storm.

What’s happening globally outside the U.S.?

Other countries are adapting and exploring alternatives.

They’re questioning reliance on the U.S. and looking at markets like China, India, and Indonesia.

For example, China is expanding its aerospace capabilities rapidly.

Their current aircraft may not compete globally yet—but the next generation likely will.

What about AI and unmanned aviation?

AI is already widely used—for route optimization, predictive maintenance, and production efficiency.

Unmanned systems are growing, especially in logistics.

We’ll likely see cargo drones first, then eventually passenger applications—but that’s still years away.

Final thoughts—what’s ahead for aerospace?

It’s an exciting time.

We’re seeing innovation in sustainability, electrification, hydrogen, and materials.

Demand is growing globally.

New markets are emerging.

The next decade will bring massive change—and opportunity.

That sounds exciting.

Claude, thank you for joining us. This has been a fantastic discussion.

Thank you, Andy. It was a pleasure.

Ladies and gentlemen, thank you for joining us today.

If you’d like to learn more, visit CFOIQ.com.

If you have topic suggestions or would like to be featured, reach out to us.

Join us again for our next episode.

I’m Andy Zesus—thanks for watching. Keep thinking.

[music]

”