Private equity decoded: In this interview with Global Franchise we discuss mastering the art of the deal and the playbook for attracting investors.
The style of this show is very conversational and attendees can ask questions instead of just a one-way broadcast.
Whole business securitization is now the preferred method for large scale franchise systems to tap the capital markets. This is something discussed at length in my book: Big Money in Franchising. Nothing Bundt Cakes is the latest example. Roark Capital is the most frequent franchise user of WBS across its portfolio. It is an efficient capital planning tool but franchisees need to understand how it works and implications.
Summary transcript & replay of podcast/interview. Alicia Miller, founder of Emergent Growth Advisors has an unusual career path, but has discovered the keys to responsible franchising, and the importance of an "exit mindset" along the way.
Buyers underwrite the future. The more confidence & belief they have in that future, the more they are willing to pay. Bring proof when you go to market.
We can elevate franchising through better disclosures and treating franchise sales like a respected profession, not an occupation.
This article is a follow-up to my short blog post - Entrepreneur asked me to elaborate on the pending Jersey Mike's and Subway acquisitions by private equity. Two iconic brands. Two massive transactions. Company culture in the spotlight as rarely seen in PE deals.
Although franchising contributes significantly to the US economy, most US business schools lack dedicated franchising curriculums. These three sources will help you get started and find out which franchise is right for you.
Today many new brands are launched to quickly “flip” the business to PE. Jersey Mike’s is one of the remaining large-scale, as-yet-unaffiliated brands built in a time when culture came first. In my view, if Cancro is seriously contemplating a PE transaction it is more of a watershed moment in franchising than Subway’s pending sale to Roark.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
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