ACQUIRING A DAILY FEE CLUBS FOR INVESTORS
Cornerstone Golf were asked to identify a buyer for an owner who was looking for a lifestyle change. This they did and were asked by both parties to mediate the agreement, organise and undertake the due diligence.
A previously successful golf centre found revenues and profits falling in an increasingly competitive market and the owners had little appetite for further investment or more proactive involvement in the management and promotion of the club.
Cornerstone Golf led the negotiations on price and overage provisions, and managed the due diligence on behalf of the investor. The transaction was completed in twenty two weeks and CGL then assumed full responsibility for management at completion. A new General Manager, Director of Golf were recruited within twelve weeks and the F&B department and was restructured. A Golf Academy was established and the number of Teaching Professionals was increased. Online booking was introduced for tee times, golf tuition and the range for the first time and a Sales and Marketing Manager was brought in to lead the outbound activity.
As the takeover took place at the start of the golf season, Cornerstone kept the existing management team in place whilst assessing strengths, weaknesses and cultural fit. Changes then followed with the appointment of a new General Manager, Director of Golf and F&B Manager. A Sales team was put in place for the first time, all booking was moved on-line and marketing spend was redirected to social media led activity. Changes were made to the clubs constitution, rules, membership structure and pricing.
Over six years these actions delivered:
Sales growth of 65%
Growth in Retail and Range turnover of 174%
A growth in Gross Profit of 86%
A growth in EBITDAR of 250%
The value of the business increasing by 135%