Services
Mergers, Acquisitions and Divestitures
Capital Structuring and Sourcing
Strategic Advisory Services
Business Valuations
Franchisor-Sponsored Finance Programs
Financial Due Diligence
Mergers, Acquisitions and Divestitures
CapGrow has extensive restaurant industry knowledge that has proven invaluable to our clients involved in selling their businesses, or buying existing businesses or markets. Through our detailed analytical process, extensive industry contacts of strategic and financial buyers, and unique marketing approach, we have consistently delivered maximum shareholder value. We manage the entire process to realize the best price, coordinate the due diligence efforts, negotiate the best terms and conditions, and execute an efficient, successful closing. CapGrow’s objective advice, unencumbered by emotion, allows us to deliver optimal value to our customers.
Our representation includes:
- Sell-side
- Buy-side
- Mergers
- Management-Led Buy Outs
- Valuation
CapGrow can help answer your questions, like:
- How do I go about buying or selling a business? What is the process? How long will it take?
- How do I maximize the proceeds from the sale of my business?
- How does the market value my business or the business I want to acquire?
- How does today’s valuation compare with historical measures?
- How do I access new debt or equity? Who do I talk to? How do I find them?
- How do I find out who is selling stores that I may want to acquire?
- Should I sell all or part of my stores?
- How do I find a second or third concept to complement my existing business?
- Is now the best time?
- How do I negotiate the buy-out of a partner?
- How do I exit a successful company?
Capital Structuring and Sourcing
CapGrow has developed an extensive, proprietary model that allows us to generate an in-depth analysis of your business. This allows us to run various scenarios to ensure that we find the optimal capital structure to support your short and long-term objectives, while also maximizing your return. Whether you need to access capital to refinance existing debt, build new restaurants or acquire existing ones, CapGrow will create a plan for sourcing the requisite funds, including:
- Senior debt
- Mezzanine and subordinated debt
- Preferred and common equity
- Sale-leaseback financing
CapGrow can help answer your questions, like:
- How do I access new debt or equity? Who do I talk to? How do I find them?
- What is the optimal capital structure to support growth and the future plans for my business?
- What returns will lenders and equity sources expect? What type of return should I expect?
- How much control of day-to-day operations do private equity funds require?
- What is the best organizational or business structure for attracting funding?
- How do I recapitalize or refinance my existing business?
- How does having a separate management and/or real estate company affect funding?
- Can I unwind my securitized loans without paying the contractual prepayment penalty? Is there some way to negotiate a lower prepayment?
- How do I determine whether to use conventional financing or sale/leaseback financing for my stores?
- Will I have to personally guarantee new store loans?
- How do I finance my store enhancement/CAPEX program? What if my existing lender won’t allow second liens?
What are the economics of each alternative?
Strategic Advisory Services
CapGrow provides independent advice to help you make informed decisions about your business as you consider strategic alternatives and opportunities. CapGrow will work with you to understand your needs, and through our detailed, comprehensive analysis, we will ascertain ways to maximize value for all stakeholders. We can also provide ongoing support through serving on franchisee and independent operators’ advisory boards.
CapGrow can help answer your questions, like:
- What are the strategic alternatives for the future of my business? What is the best course of action?
- How do I put together a business plan? What is the best organizational or business structure for my business?
- Should I find a second or third concept to complement my existing business? If so, how do I find another concept?
- Should my business own real estate?
- How do I get my debt to a reasonable level?
- How do I negotiate the buy-out of a partner?
- When should I exit a company?
Business Valuations
Whether you are thinking of growing organically or through acquisition, selling, recapitalizing, or considering a change in ownership, these are the times when you need to understand the value of your business. Exclusively committed to the restaurant industry, we are abreast of the current market conditions impacting the value of restaurants companies. We utilize our extensive modeling techniques along with our real-time knowledge to formulate the appropriate value. CapGrow can provide a comprehensive, detailed, accurate and independent valuation of your business today, as well as where it can be in the future.
CapGrow can help answer your questions, like:
- How does the market value my business?
- How does the current market condition impact the value of my business? How does this compare with historical values?
- How does real estate impact the value of my business?
- Should my management services be provided through a separate company?
- How does my debt impact the value of my business?
Franchisor-Sponsored Finance Programs
CapGrow has successfully completed more than $475 million of franchisor-sponsored financing programs for our clients. If you are a franchisor looking for ways to grow your concept or undertake enhancement initiatives, we can arrange sponsored financing programs for the franchisees in your system to alleviate their capital constraints.
CapGrow can help answer your questions, like:
- Can a small franchisor arrange new store development financing on a global basis for most of the franchisees in my system? What types of lenders will be interested in my system? What terms and conditions will they offer my franchisees?
- What level of guarantee will be required under a sponsored finance program?
- Can I assure that every franchisee in my System will have access to the funding necessary to develop their territories?
- How do I ensure that store enhancement/CAPEX financing programs are available to my franchisees?
- How can my franchisees get help in developing their business plans? Can they get help in making presentations to lenders and equity sources?
Financial Due Diligence
Whether you are an independent operator, franchisee, franchisor, private equity firm or hedge fund, CapGrow has the knowledge and expertise to assist you in the due diligence phase of your acquisition or investment in restaurant companies. We will coordinate the process and analyze the financial information before producing a comprehensive, detailed report of our findings. Our thorough investigation will ensure that you are getting exactly what you agreed to buy.