PE Profit Ladder Articles
Crumbl Is Reportedly For Sale
It was only a matter of time. Crumbl is reportedly for sale. If they get their hoped for 10x valuation (approx $150M EBITDA) this will be a nice deal. The incoming PE sponsor will bring new eyes, is likely to invest in further growth, and has a predictable playbook. Franchisees in growing systems should always be prepared for the system to trade to a PE sponsor.
Franchise Leaders Forum Podcast: Navigating Franchise Exit Strategies & Private Equity
Have you wondered how private equity can transform your franchising journey or why timing your exit strategy is as critical as choosing the right franchise? This discussion shares some golden nuggets on scaling your franchise, understanding private equity’s role and most importantly, planning your exit strategy ahead of time. So, if you are ready to uncover the secrets to scaling, sustaining and successfully exiting your business as well as learning about the financial intricacies of franchising that could be the game-changer for your business then today’s episode is for you! Episode Highlights: • Importance of private equity • Understanding what qualities private equities look for • Have a plan and an exit strategy ready • Financial preparedness and financial challenges • Strategic focus on exit strategies and private equity roles • Viewing a business from a buyer’s perspective • Importance of business valuation • Preparing a business for sale • Strategies for emerging brands when selling • Role of advisors in franchising
Jersey Mike's Sold To Blackstone for $8B
When you build a more valuable business FOR YOUR FRANCHISEES you win at exit. ..."only" 3,000 locations, $1.3M AUV, sold for $8B. Compare that to Subway with AUVs less than half JM's performance, 36,500 locations, sold for $9.6B. JerseyMikes continues to crush it. Now Blackstone simply needs to avoid messing up a great business.
Tropical Smoothie Has a New CEO
The Tropical Smoothie Cafe case study appears in Big Money in Franchising because it shows what can be accomplished when a management team and PE sponsors both put franchisee outcomes and a great culture first. Charles Watson, CFE has had an incredible 16 year run @ TSC, the last 6 as CEO. These are big shoes for the new incoming CEO to fill.
Entreye Podcast Interview
Themes from this podcast: ▶ State of franchise brands in the US ▶ Private Equity's Value in Franchising ▶ When is the best time to attract PE investment ▶ Best way for brands to prep for PE, and things to avoid ▶ Reg flags PE looks for in Franchise brands ▶ PE's on the franchise development pipeline ▶ PE's interest in unglamorous industries ▶PE's role in enhancing value through platforming
Looking Ahead to 2025, Remember Franchise Ownership is Personal
Looking Ahead to 2025, Remember Franchise Ownership is Personal
Finance Book Club Interview
Finance Book Club Interview and broad discussion about private equity in franchising with live audience Q&A.
Consider These Points When Selling Franchises During A Contentious Election Season
"Election jitters" can negatively impact the franchise development process. If your franchise sales have stalled, or you're suddenly hearing "We're going to wait" from prospective franchisees, here are tips to reboot growth.
Key Takeaways from Springboard Conference: M&A Session "Art of the Deal"
Key takeaways from the panel of M&A experts at the 2024 Springboard Conference, moderated by Alicia Miller of Emergent Growth Advisors: "The Art of the Deal - How founders can prepare in advance to achieve the best possible outcomes." 1) First and foremost: focus on unit level economics - profitable & happy franchisees build maximum enterprise value! So simple, yet often overlooked! 2) Collect franchisee P&Ls AND cash flow statements from the beginning and use that information to coach to better results. Buyers will want to cut this data multiple ways 3) Recruit franchisees carefully - quality over speed 4) Ensure you're opening what you're selling or that sold-not-open funnel will go from looking attractive to being a liability. If you can prove you're opening them and ramping franchisees to profitability quickly, you may be able to recapture some of that SNO value in a transaction (aka "full maturity value") 5) Get to know the landscape of potential buyers early - socialize and look for cultural fit 6) Track record matters, especially if you plan to roll equity (and most buyers want you to do this) 7) Know what you want to accomplish and what you're looking for in a potential capital partner 8) Deal terms can be tricky - experienced advisors can help you navigate 9) Franchising continues to see robust buyer interest, but there is still a bit of a gap between buyer and seller expectations 10) It's tough to make forward predictions, but the panel was pretty optimistic that 2025 is going to be a busy year for franchise M&A
Popular Insights
As Seen In
PE Profit Ladder® Market Watch Newsletter
PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES