Restaurant Mergers & Acquisitions
The restaurant M&A fever is catching across geographies, cuisines, categories, and ownership types — and burning white-hot from foodservice tech startups and corporate venture capital initiatives to budding emerging brands and even the consolidation of mature and distressed brands around the world.
Global Restaurant Valuation Trends
As Private Equity activity continues to flourish in the foodservice sector, restaurant valuation multiples have followed suit — rising even when deal volumes drop. Premiums for high-quality targets are on the rise, with valuations reaching their highest multiple (11.1x) since 2007. More about the valuation trends impacting restaurants here.
The CAPEX-to-revenue ratio of publicly traded restaurants in the U.S. decreased in 2017 (for the first time since 2008) by 29%, and has remained at low levels since then. While the majority of businesses are decreasing CAPEX investments and debating over where they should be allocating funds — whether to infrastructure improvements or buybacks or dividends — market share winners are gaining traction with investments in guest experience enhancements, technology, infrastructure, and other competitive moat- building strategies.
Restaurant Investments in Alternative Formats
Who are the players growing the fastest? Disrupters. Among them, the rise of alternative formats that traditional industry tracking sources are failing to keep up with (in other words, consumption is increasing, just not in traditional formats and channels).
Most Common Commercial Due Diligence Findings
Through our extensive experience conducting restaurant commercial due diligence engagements, we’ve found that the same findings continue to crop up again and again.
Billions Fleeing Public Markets in Public-to-Private Deals
The pains of going public these days can be avoided while still gaining funding as there are trillions in private equity capital ready to be invested globally (and billions earmarked for foodservice).
PE Investment Overview for Restaurants
How could you grow your business with a $50m private equity investment? Would you expand into new markets, roll out the prototypes you’ve been dreaming of, or deploy new technology to make it even easier for diners to get your food? Here we offer a brief overview of PE funds operations, focusing on each stage of the deal.
How to Prepare for Private Equity Investment
Signing a deal with a private equity firm can, naturally, have profound effects on the organization operationally in addition to the impact on value creation strategies and resources. The process has its risks, and teams can often disagree on how to reach goals. Here’s a guide to help restaurant executives prepare for taking on a private equity investment.
Consolidation in the MENA Region
With the new normal in the GCC being received as unsettling to operators in the region, we foresee consolidation being a major theme across the restaurant industry — and that the biggest winner will be the group with the best acquisition strategy.
The Largest Restaurant Acquisitions in the Past 20 Years
Between 2004 and 2016, the number of restaurant acquisitions and mergers in the US increased by 86% and deals have become increasingly more strategic (rather than financial). We rounded up the restaurant M&A activity of the past two decades.
The Most Active Private Equity Firms in the Restaurant Industry
Private Equity has found a niche in the restaurant industry, and deals are increasingly cropping up in Asia, the Middle East, and South America. These are the most active PE firms in the restaurant industry.
Food Tech IPOs
Food tech is making its mark on the restaurant industry in a major way. In fact, we’re witnessing such a seismic change that the full ramifications of how tech will impact restaurants still remains to be seen.