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Hospitality, Leisure and Sport

For more information about our expertise in this sector, please contact Dan Berman

Leisure and Hospitality

Although a diverse sector, many organisations have suffered from falling revenues due to pressure on consumers’ discretionary spend. This combined with the ever-increasing regulation, consumer attitudes towards 'fast food' are all impacting the revenues within this important sector.

Such is our reputation that both management teams and leisure sector investors frequently seek our involvement in restructuring distressed businesses. Our approach is to work in partnership with organisation to provide practical restructuring solutions to restore confidence and provide a platform for future financial growth.

When advising leisure sector organisations we typically start by examining the working capital arrangements. Given the sector’s notorious difficulty with accurate cash flow forecasting, our team’s priority will be to stabilise the company, ascertain trading levels and to ensure cash flow is managed correctly.

After this initial assessment we typically examine supplier relationships, as we know they can be a major influence on the trading performance of leisure businesses. For example major food or drinks suppliers have substantial power over their distribution networks, frequently imposing terms such as pro-forma invoices or seven-day payment; an obvious and substantial drain on cash flow. We work with businesses in this sector and often assist them in negotiations, typically acting on their behalf to obtain more favourable terms.

Sport

Well-managed professional sports organisations with realistic forecasts and sensible budgets are not always rewarded with a trophy at the end of the season. They do, however, stand a more predictable chance of turning investment into profit.

With an in-depth knowledge and understanding of the dynamics of professional sports organisation management, we can work closely with sports organisations, and their creditors and investors, to provide a strategic perspective on the direction of the business in order to achieve the right balance between the pursuit of on-the-field success and profitability off it.

Our capabilities include:

• Financial forecasting
• Cash flow management
• Short and long-term refinancing
• Security and risk management
• Fraud and litigation support
• Disposals

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