TeamSport is Europe’s largest operator of go kart tracks. From the £7.8m management buyout of February 2013 until the exit in October 2017, the business consistently performed in line with management’s business plan, successfully growing from 9 to 23 tracks and quadrupling in profitability. TeamSport established a sustainably differentiated business model, and professional brand, in a fragmented ‘hobbyist’ UK market with individual new tracks delivering 35% return on capital employed.
From leading the initial investment and throughout his involvement on the board, Julian Carr supported TeamSport’s growth through:
- Encouraging CEO Dominic Gaynor to develop an accelerated roll-out strategy
- Introducing an experienced Non-Executive Chairman, Peter Roberts, the founder of PureGym
- Supporting expansion of the senior management team with the appointment of an Operations Director with extensive multi-site leisure experience
- De-risking the business and the reliance on one particular track with a number of targeted, strategic acquisitions
- Delivering the additional financing to support the accelerated track roll-out
- A strategy of re-negotiating lease terms to improve the weighted average lease length from 6 years in 2013 to over 12 years at exit
- Encouragement of the development of the online marketing proposition with the introduction of specialist e-commerce consultants
Having successfully grown track numbers from 9 to 23 and quadrupling profitability, the management team, led by CEO Dominic Gaynor, completed a secondary buyout delivering 4.1x returns to investors in the original 2013 MBO. Julian engineered the funding of the secondary MBO in October 2017 by Duke Street and investors of Ethos Partners and Bestport.