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.
Buy Side M&A Services and Sale-Leaseback
Transaction for Family Office
The firm was engaged by a Family Office based in New York interested in acquiring a QSR platform they could scale and included real estate holdings. Through its outreach process, ReInvest Capital was able to identify a target company that owned 56 Burger King restaurants as well as real estate owned at 42 of the Burger King’s.
ReInvest Capital performed the negotiations, analysis, diligence and worked with the third party constituents, including the franchisor, lender and landlords to successfully close the transaction. ReInvest Capital then led a Sale-Leaseback transaction in which the fee properties sold for 150% of the purchase price paid less than two years earlier and equal to the total acquisition price for both the operations and real estate.
ReInvest Capital continues to provide Buy Side M&A services to this client, and through additional acquisitions, including in other markets as well as tuck-ins, helped to grow the Burger King portfolio to 130 restaurants with an estimated equity value roughly 10x its original amount.
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.