PE Profit Ladder Articles
What Happens When PE Invests At the Outlet Level. Is Activism Next?
It is usually a good sign when PE invests at the outlet level - because it signals unit level economics are attractive. But what happens when PE investors later become the majority of franchisees in a system? How do relationship dynamics change? Are franchisor management teams (even brands PE-backed themselves) prepared?
Franchise Times Investment Show
How has private equity changed due diligence for prospective franchisees? Listen to my interview with Franchise Times Editor-in-Chief Laura Michaels to kick off the FT Investment Show.
PE Profit Ladder - Market Watch Blog: Sun Capital Partners Exits Franchising
With the $30M sale of Smokey Bones to FAT Brands, Sun Capital Partners has exited franchising. Sun Capital acquired Smokey Bones for $80M in 2007 from Darden Restaurants, and used to be a prolific franchise and restaurant investor. It had notable successes, but also a string of restaurant bankruptcies on its watch.
4 Things You Need to Know About Private Equity Investors in Franchise Businesses
This simple list should be at the root of every decision you make about building your brand until you decide to sell or bring in a private equity partner.
Here’s How Emerging Brands Can Attract – Or Turn Off – Private Equity
Private equity investors have a specific playbook to lift emerging franchise brands. These new brands share common challenges that do not dissuade the subset of private equity buyers and platforms that are open to working with smaller brands. Some of these challenges are both anticipated and somewhat attractive to these specific groups.
In A Crowded Field Of Emerging Franchises, Only The Strongest Brands Thrive: Intense Competition Keeps A Lid On New Concepts, Thanks To Private Equity
According to FRANdata, an average of 250 new franchise brands have launched every year in the U.S. since 2001. That's as many as 5,250 brands launched over the last 21 years. Yet in 2022, FRANdata counted only 4,000 total active franchises — up from 3,000 in 2010, which was flat also at 3,000 back in 1990. So, where did all those emerging brands go?
Higher Acquisition Prices Bring More Growth Pressure to Franchise Sector
The acquisition market has been hot lately. The value of U.S. mergers and acquisitions in 2021 across 7,896 transactions reached $2.6 trillion, 30 percent above the previous record set in 2015. In the first half of 2022, the market pulled back, dropping 29 percent year-over-year, but this is still strong by historic standards.
Thinking Of Selling Your Franchise To A Private Equity Firm? Here Are 9 Ways To Build A Valuable Reputation
Private equity (PE) firms are watching your franchise business — right now. If you want to eventually exit via a private equity buy-out, you must build a valuable reputation.
To Create Franchise Brand Value, Don’t Ignore These Action Items
Every new year, strategic planning and forecasting efforts suddenly seem more tangible. Bets are placed. Budgets, infrastructure investments and acquisition targets are finalized.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES