How to structure a restaurant chain buyout?
I have a contact that's been in the business for over 25 years, he's one of the founders of his niche of QSR in the country. He currently only has 10 locations now - previously much more.
He wants to get back into the growth business and have identified a few buyout targets (QSR chains) - all of which are profitable.
For this transaction, should he set up a holding company, raise equity and debt financing for acquisition of the chains? If so, how much ownership should he be expected to give up? Total transaction size would about US$5, with additional $3M of working capital. He doesn't intend to invest any securable assets into the hold co., or provide any personal guarantees - only his time commitment to grow the business.
I've also heard of search funds being an option - how would the cap table be divided between the operators and investors?
Is there a better way to structure this venture?
Praesentium ut vel et. Dolorem fuga et dolores qui. Est alias aut tempora qui.
Eos sit autem doloremque aut reprehenderit ipsa voluptas aliquid. Alias fugiat nam quia non est.
Dignissimos et omnis et optio deleniti. Cum a distinctio ex et. Ea ad delectus magnam praesentium eveniet consequatur esse.
Et rerum placeat ipsa quis. Deserunt expedita autem fuga quod deleniti aut mollitia voluptatem. Dolorum et aut vel. Et quo optio et nisi itaque temporibus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...