Private Equity Sellers

Video

04.02.2019

For the private equity community, many groups want to sell their investments in a 5-7 year horizon. Some don't have predefined timeframes. Most family offices are buy-and-hold investors but are opportunistic sellers when prices are high.

There comes a time when everyone wants to monetize their investments. For many franchisees, this could happen after a 20 or 40 year career often spanning across multiple generations. For the private equity community, many groups want to sell their investments in a five to seven year time horizon. Some don't have predefined timeframes. Most family offices are buy and hold investors, but are opportunistic sellers when prices are high. At Unbridled Capital, we have helped private equity firms and family offices in the following ways.

Number one, selling their franchise investments to monetize a big gain. We currently have 600 restaurants for sale across a variety of restaurant and franchise brands with an average deal size of 30 to 40 units and several hundred million dollar and up franchisee sell side assignments.

Number two, evaluating a re-franchising strategy for brands they've acquired. We offer perspectives on how and when to re-franchising, how to structure development obligations, what profile of franchisee is desired, how to balance deal proceeds with development and health of the franchise system and how to maximize proceeds when re-franchising.

Number three is engaging in buy-side services to find restaurant acquisitions. I might be one of the only people in the world who knows almost every young franchisee, but we're aggressively expanding our relationships across other brands as well. Buy side services is a core area of expertise we offer to investment firms after first understanding their objectives and valuation methodologies.

Number four, sourcing operators to run franchise companies. I personally know hundreds of operators from my young corporate days, knowing well heeled operators and plugging them informally into franchise investments is a unique way we help our clients.

Number five, providing strategic, board level advice for franchise investments. And sixth providing access to transaction comps, financial commentary on a variety of brands, perspective on franchisors and their relationship agreements and CapEx programs.

We believe the private equity and family office community will be a big area of growth for us going forward. These firms are looking for competent, industry experts who can help them create economic value through all phases of the life cycle of their businesses. At Unbridled Capital, we invite you to reach out to us if we can help you in any of these ways.