Two Dynamo Operators Win First Duo Deal of the Year
In New York City last summer, James Bodenstedt presented a single sheet of paper with four columns of type to two hand-picked prospective buyers. “One column for each of the brands, and then a total,” recalled the founder of Muy Cos., who sold all 755 of his Taco Bell, Pizza Hut and Wendy’s restaurants in […]
Auspex Capital Facilitates the Sale of MUY companies (Restaurant Finance Monitor)
MUY Companies, MUY Sales Not that long ago, James Bodenstedt was content with 18 restaurants. “That was enough for me. We never looked to grow, but we positioned ourselves ready to grow if the opportunity arose,” he said. Bodenstedt is president of MUY! Companies, one of the largest YUM! Brands and Wendy’s franchisees. And arise […]
Managing the Sale Process:
When is it the Right Time to Sell Your Restaurant Business?
Why Are You Asking the Question? You have been grinding away for years, never taking a vacation, plowing almost every penny you have ever made back into the restaurants and then one day you look up from your computer screen and ask yourself the proverbial question: “Should I consider selling my restaurant business?” If this […]
Managing the Sale Process:
Getting Your Restaurant Company Ready for Sale — Failing to Prepare is Preparing to Fail.
Preparation is Key In the immortal words of legendary UCLA basketball coach John Wooden, “Failing to Prepare is Preparing to Fail”. In the context of selling your restaurant company, failure is typically defined as not fully optimizing the sale price. Like most things in life, the best way to maximize the probability that you will […]
Managing the Sale Process:
When It’s Time to Sell Your Restaurant Business, Hire an Investment Banker, Not a Broker.
What’s the Difference? The Broker introduces you to the buyer and then largely sits on the sidelines waiting to collect his commission check. The Banker is the quarterback of the team who brings a wealth of knowledge and experience to the game, is intricately involved in all facets of the transaction and is responsible for […]
Managing the Sale Process:
Proforma Cash Flow Adjustments: What Works and What Doesn’t
The Price of a Restaurant The price restaurants change hands at is typically based on a multiple of cash flow. It is a Buyer’s expectation that the cash flow he is buying is: 1. Verifiable 2. Sustainable 3. Financeable To determine if those three tests are met the Seller starts with the actual historical cash […]
Managing the Sale Process:
The Letter of Intent – More is More
Words to Live By When Negotiating the LOI Business consultants are fond of saying: “Less is More”, but when it comes to the right strategy for negotiating a letter of intent (“LOI”) to sell your QSR business, we say: “More is More”. Here’s why: The Seller’s negotiating leverage is highest when prospective buyers are competing […]
Managing the Sale Process:
A Users Guide to Surviving the Asset Purchase Agreement Process
THE BACKDROP: The APA process is going to be a painful, difficult and expensive process. That’s just the way it is! The process doesn’t run itself. The principals need to stay in control Expect anywhere from 45 to 145 days to complete the process. If you stay in control it will be on the shorter […]
Managing the Sale Process:
Due Diligence – A Very Important Game of Show & Tell
By Christopher Kelleher The Positive Influence of the Due Diligence Process Due diligence is the process by which a buyer can either talk himself into buying something or talk himself out of it. Assuming the seller really wants to sell, he’d best get organized and take this part of the sale process very seriously. The […]
Managing the Sale Process:
The Post-Closing Adventure – It Ain’t Over ‘til it’s Over.
You’re Almost There… At long last, your deal is absolutely, positively closing tomorrow! The culmination of your professional career is at hand. No more trying to coax pimple-faced teenagers to come into work. No more 400-pound customers returning a cold, but half eaten, hamburger. No more 105-year old lady parking her Buick LeSabre in the […]