PRIMING A CLUB
FOR SALE
See how Cornerstone Golf helped to maximise the sale value of one club resulting in 150% growth to the overall value of the business.
LOCATION
United Kingdom
DIRECTION
Growth & Sale
Situation
This 27-hole, 170-acre daily fee facility, built in the early 1970s, and turning over £1.1m per annum, required its operations to be restructured in order to grow its value, in preparation for sale.
In addition to its 18-hole and 9-hole courses, the venue boasted a 30-bay driving range (20 covered) and a good level of teaching activity. Primarily operating from daily fee income, the club had a number of full and executive members who paid an annual subscription, and a green fee each time they played.
The clubhouse accommodated functions of up to 200 people and the site contained a number of other buildings that would be included in the sale.
Response
An analysis of its 30-minute drive catchment revealed just over 1m people of which 748,000 were ABC1, a ratio of 69.7% - well above the national average.
With the opportunity clearly established, it was time to put in place the measures that would optimise business performance and make the club an appealing proposition to would-be buyers. Cornerstone Golf:
-
Restructured the cost base, including the recruitment of a new General Manager and senior management team
-
Re-positioned the golf club with an updated website and enhanced its social media footprint
-
Produced new corporate ID and signage throughout the business
-
Installed new retail and food and beverage management software
-
Transferred all forward-booked business online
-
Installed flood-lighting to the driving range
-
Hired additional golf teaching professionals.
Business Outcomes
-
Turnover increased by 55% YoY
-
EBITDA increased by 960% YoY
-
EBITDA 340k
-
150% growth in the value of the business.