Turning troubled businesses around can present real challenges. Getting the right management team in place and setting the strategic course for transformation early enough is crucial. Although market conditions became more competitive, we strengthened management and stuck with the company to create a solid business with a more loyal customer base, better profitability and a stronger balance sheet. We created the Esporta Group by acquiring two premium tennis, health and fitness clubs in 2002 – Esporta and Invicta. In the period leading up to the deal, Esporta plc had experienced problems which included two profits warnings, the departure of its CEO and a halving of its share price. With our backing, the company went on to become one of the leading health and fitness clubs in the UK. We had been tracking Esporta since it was listed on the London Stock Exchange in 2000. It then set out on an ambitious expansion programme which hit short-term profits growth unexpectedly hard, despite the company having first-class facilities in top locations. The short-term problems that followed gave us the opportunity to build a sizeable stake in the company in the first place, and then to complete the first ever hostile take-private by a UK Private Equity firm. Because we knew the industry well and could easily inspect the company’s assets we overcame the obstacles that usually prevent Private Equity firms from making hostile offers, including access to debt finance via strong relationships with our banking partners. At the time of the deal, the enlarged group comprised 18 tennis clubs and 42 health and fitness clubs, with a further 13 scheduled to open before the end of 2003. Its 245,000 members make the group the UK’s second largest premium health and fitness operator. In January 2004, we raised new debt facilities to finance the continued growth of Esporta's racquets club business to combat increasing competition in the sector. We also strengthened the management team to turn the business around focussing on measures to boost profits and customer retention. The management team, led by CEO Neil Gillis and FD Michael Ball, drove an impressive turnaround of the business. Customer retention and profitability were improved and a loss-making overseas business was sold. Management also delivered an exciting pipeline of new site opening opportunities which helped attract a wide range of interest from potential buyers. In February 2007, Esporta was sold to the Halabi family trust. At the time of the sale, Esporta exhibited market-leading performance, with profitability and key customer KPIs well above the industry average.