Company Overview
The Club is an 18-hole, daily fee golf club located on 160 acres in the suburbs of Chicago.
Amenities include a lighted driving range, practice greens, and a clubhouse with a pro shop and restaurant.
Engagement Overview
Deferred maintenance and waning popularity caused the operations of the Chicago area golf club to decline. Club’s revenues declined, causing the Club to default on its senior bank debt and ground lease.
After its lender foreclosed on the Club’s operations, FDP was hired to locate a buyer for the operations and provide interim accounting services, by acting as receiver for the golf club:
–FDP dedicated a senior accounting professional to updating and compile cash receipts and expenses for bookkeeping purposes, and
–Simultaneously task other FDP professionals with locating a buyer for the golf club and selling the operations.
Working in collaboration with the management of the golf club, FDP accomplished the following:
–Worked with the prior receiver to smoothly transition the accounting function and minimize disruption to the Club;
–Communicated the ongoing progress of the Club’s sale to the municipality where the club was located;
–Compiled an information memorandum to introduce potential buyers to the Club, despite having limited information and records; and
–Generated several management visits with potential purchasers.
Results
Created a competitive auction for the sale of the Club’s operations by generating interest among several parties.
Maximized the lender’s recovery by selling the operations to the municipality where the golf club was located.