Private Equity

What’s Driving All the Recent Public-to-Private Deals?

Since January 2017, nearly $15b worth of restaurant stocks in the U.S. delisted, as nine companies left public stock exchanges for private hands. The public-to-private deals come at the moment when very few restaurant companies are making initial public offerings. Over the same period, restaurant IPOs accounted for only $59m

Q3-2018 Restaurant Mergers and Acquisitions Update

Already in 2018, $1.5t has changed hands in mergers and acquisitions in North America and Europe. In foodservice, the number of deals is comparable to the first three quarters of 2017, and valuations remain in the 10x EBITDA range. The trends most impacting Q3-2018 restaurant mergers and acquisitions are: Consolidation:

10 Successful Foodservice Acquisition Strategies

M&A activity is reaching near-record highs in the U.S. and globally, and the hospitality industry is no exception. Deals in the food and beverage industry grew at a 9.7% CAGR between 2010 and 2017, while the restaurant portion of that sector enjoyed 6.6% growth over the same period.  Emerging brands

Q2-2018 Restaurant Mergers and Acquisitions’ Theme: Consolidation

Q2-2018 restaurant mergers and acquisitions remained fast and furious. The deals announced align with many of the trends we’ve been tracking, from casual dining’s decline to the heat in restaurant investments — especially among middle-market companies. Mergers and Acquisitions Consolidating Casual-Dining Sector The four deals in casual dining in the

Middle-Market Restaurants Should Take on Investors to Expand

Even a decade after the Great Recession, restaurant commercial lending remains tight, but there’s still a tremendous amount of eager capital around the globe. Foodservice companies are increasingly turning to different sources to fund their restaurant expansions. Restaurants have proved particularly intriguing to private equity (PE) firms, and we’ve been approached

How to Prepare for A Private Equity Restaurant Investment

The private equity world is currently a sellers’ market, but this won’t last long. High asset prices, intense competition among bidders, and ongoing geopolitical instability have made deals harder and harder to come by, meaning that there’s lot of dry powder looking for safe — and profitable — homes. (In

Q1 2018 Restaurant Mergers & Acquisitions Roundup

If we just looked at the numbers, we might conclude that restaurant mergers and acquisitions stagnated last year. But there were still some massive deals: notably Post Holding Inc.’s purchase of Bob Evans Farms for $1.5b, Restaurant Brands International’s (RBI) deal to acquire Popeyes Louisiana Kitchen for $1.8b, and Panera

Confidential Information Memorandum: Key Documentation for Private Equity Investments

Restaurants provide potential investors with a Confidential Information Memorandum early in the deal process. The document is designed to give firms a clear and accurate picture of the investment, while highlighting why it represents such an unmissable opportunity. The sell-side deal team should work with legal counsel, an investment banker,

2017 Restaurant Mergers and Acquisitions: An Update

Recent data suggests that restaurant mergers and acquisitions (M&A) are set to continue growing, both in number and in value. In fact, the number of restaurant M&A deals in the US increased by 86% between 2004 and 2016. Recently, we’re seeing specific pockets of the industry benefit from restaurant mergers

The Most Common Restaurant Commercial Due Diligence Findings

Private Equity firms have been snapping up restaurant chains at an astounding rate in recent years. It makes sense, considering the industry is cash-generative, offering a continual source of new concepts that can be scaled and eventually sold, generating lucrative returns. And while those in the financial and banking sectors