Project Description
START
Discovery was in breach of its banking covenants and was facing the worst tourism downturn since 1998.
Lack of systemisation within the business and the head office was unsustainably large.
Litigation with a minority shareholder causing a distraction to the management team.
Lack of strategy to drive EBITDA growth and improve business value.
TRANSFORMATION
Changed the business from asset accumulation business to a park management business through the development of hotel like head office systems.
Worked closely with Discovery’s financiers to extend the expired facilities while focusing on deleveraging the business through the sale of low yielding parks.
Implemented yield management through a flexible tariff structure based on occupancy across different distribution channels.
Replaced the CEO and appointed new members to the board of directors who were all aligned with the new vision.
Led an operational restructure to regionally base state manager who were responsible for marketing and operations for the parks under their control.
THE RESULT
Increased EBITDA, dramatically reduced net debt and improved return on capital employed.
The transformation saved the business from receivership and generated significant value for all parties.
As of today, Discovery has won numerous tourism awards and continues to grow having recently acquired the accommodation parks from Aspen Parks.