Acquisition & Recapitalization
for Multi-Unit Operator
ReInvest Capital performed a series of transactions for one of Focus Brand’s largest franchise groups. The firm performed Buy Side M&A services to acquire the initial portfolio of restaurants, identifying targets, leading negotiations, due diligence and coordinating closing. ReInvest Capital worked alongside their client to strategically identify and analyze potential tuck-in acquisitions in order to increase the size of the portfolio. The result has been six additional acquisitions performed and led by ReInvest Capital.
Over a period of just a few years, with yet more acquisitions still in process. When the time came for their client to recapitalize, ReInvest Capital worked to replace all existing debt with new debt at better terms and swap its previous equity with a Preferred Equity vehicle that provided growth capital to allow the company to further build up its portfolio. During its time providing financial advisory services to the company, ReInvest Capital has performed other value-added work, including analysis of lease obligations and the quality of its locations.
Strategic Roll Up Strategy for
an Iconic Restaurant Brand
ReInvest Capital is currently engaged and performing Buy Side M&A Services for one of the world’s iconic restaurant brands, Chick-fil-A. The firm’s focus is to assist Chick-fil-A’s efforts to expand its footprint into markets it has not well-penetrated through a roll-up strategy. This includes working with the brand’s real estate team to identify markets and trade areas which represent opportunities to grow in, targeting locations that can be re-flagged.
ReInvest Capital conducts multi-party negotiations on behalf of the company, which includes discussions with landlords, business owners and other franchisors. These negotiations are typically complex, as they involve satisfying the requirements of the various stakeholders involved in the transaction, as well as Chick-fil-A.
To date, the engagement has focused on the southeast; but in 2021 Chick-fil-A and ReInvest Capital plan to expand the scope of the project to other geographies through the United States.