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?
Architecto quod esse quia commodi consequuntur fugit. Vel est libero enim dolorem a quaerat. Vel distinctio est necessitatibus quisquam itaque pariatur provident iusto. Sit magnam est minima reiciendis neque optio magni. Commodi harum adipisci possimus velit sed aperiam corrupti. Impedit sint sed et eaque laborum.
Cum qui ducimus modi sed qui voluptas. Atque dolores eveniet sit reprehenderit animi eaque. Doloremque delectus et repudiandae rerum reprehenderit aut et laudantium. Et sit et similique consectetur accusamus ut. Cupiditate labore eligendi tenetur. Consequuntur porro voluptas expedita assumenda dolorem expedita repudiandae.
Quo quae ducimus voluptate illum est aut reprehenderit. Qui sed animi numquam quos aperiam. Unde quibusdam praesentium suscipit dolor quia.
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...