ACQUIRING A CLUB FOR AN INVESTOR
An overseas investor was looking to make acquisitions in the UK and appointed Cornerstone Golf to identify clubs, agree terms and then manage the process of due diligence and integration on their behalf.
LOCATION
United Kingdom
DIRECTION
Acquisition
Situation
Cornerstone Golf were appointed on a case by case retainer and success fee to identify target clubs and facilitate negotiations between the principals.
This incorporated a working relationship with the management team to complete due diligence on the freehold property, operations and personnel and the production of a three year business plan that incorporated capital works where required.
Response
Cornerstone Golf reviewed the construction of the 27 Hole course and associated buildings, areas of capital exposure including plant, irrigation, drainage and compliance. The trading performance, sales history, marketing and social media activity against the competition in its catchment area.
Business Outcomes
An acquisition paper and associated schedules outlined the following:
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The history of ownership and planning permissions
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A review with comment on the trading history
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An assessment with recommendations of the management team and facilities
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A Competitive Market Review and growth opportunities for the business
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An assessment of capital investment requirements of the club
The transaction was agreed and completed within twelve weeks, Cornerstone integrated the business into the new ownership and was retained to provide ongoing advice and continue looking for new opportunities.