Commercial Due Diligence

If it’s not worth 1%, it’s not worth 100%

They say beauty is in the eye of the beholder; but it should also be said that buyers’ most guilt-laden remorse is in the hands (and oftentimes, heart)  of the deal-maker that bolts past proper due diligence. A penny saved is a penny earned; but a penny saved on diligence is the one that jeopardized ninety-nine other humble and hardworking pennies that needn’t have been put at risk at all. 

Our approach to restaurant commercial due diligence is holistic and robust, integrating our extensive proprietary knowledge of the industry. We help investors make informed decisions by evaluating opportunities with investment targets across the globe to determine whether a business plan stands up to the realities of the market. In determining how an investment fits into the market, we work to challenge assumptions — with the knowledge that creating a credible path to strong growth will produce the greatest returns on investment.

Sector-specific operational expertise is a key element of the private equity toolkit and it’s what sets us apart. Private equity interest in the foodservice sector has been increasing in recent years. On those deals, a firm with extensive restaurant experience and a deep knowledge base is best equipped to provide an accurate analysis. In fact, a recent Harvard study found that “private equity deals led by partners with prior operational experience, particularly in the restaurant industry, show greater improvement in inspection results than those led by partners with financial or banking resumes.”

Our services span from targeted analysis to fully-integrated due diligence. On every project, we work to determine a target’s full potential, and provide a clear post-acquisition agenda.

We can help by:

  • Providing focused, industry-oriented work and inputs in a short timeframe
  • Evaluating external forces and factors that could help or hinder the target
  • Examining the risk to profitability based on a chain’s locations, leases, and competitors
  • Providing a clear picture of the scalability and future capacity of the business
  • Relating evolving consumer dining behaviors and industry trends to the target and investment case
  • Evaluating a target’s market and the feasibility of projected growth plans
  • Refining a target company’s growth strategy through challenging (or validating) a firm’s investment thesis