ACQUIRING A PRIVATE MEMBERS CLUB FOR INVESTORS
A UK investor was looking to make acquisitions in the golf sector and appointed Cornerstone Golf to identify clubs, agree terms and then manage the process of due diligence, purchase and ongoing management on their behalf.
LOCATION
United Kingdom
DIRECTION
Acquisition
Situation
A family owned club were considering a retirement disposal and wanted to dispose of the club off market.
Response
Cornerstone Golf led the negotiations on price and timing between the two principals and undertook the due diligence on behalf of the investor. The transaction was completed in eighteen weeks and assumed full responsibility for managing the facility at completion. 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 Head Chef. 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.
Business Outcomes
Over five years these actions delivered:
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Membership numbers grown by 90%
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F&B growth of 30%
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A growth in Gross Profit of 51%
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A growth in EBITDAR of 149%
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The value of the business more than doubling
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Existing golf facility provision in the area