Should Your Restaurant Partner with a Private-Equity Firm?

June 29, 2018 | FSR Magazine

Authored By:

Philipp Laqué

Have you considered partnering with a private-equity firm to grow your restaurant?

For restaurant operators that want to grow and need funding, partnering with a private-equity investor can be a good place to start, as long as operators fully consider the pros and cons.

Private-equity firms can provide significant benefits to a restaurant company, such as providing the financial backing that can fuel substantial growth. The challenge can be identifying an investment company with an approach that’s the best match for the company.

Possible downsides? Private-equity firms make short-term financial commitments, so restaurant operators will have to find another funding partner after the first firm exits. And no matter which firm operators are working with, the equity partner needs to be included in decision-making, which could slow down the decision-making process.

With that said, private-equity investors are often highly successful in working with restaurant companies. But it’s important for operators to understand their own worth to secure the best deal.

Read the full article in FSR Magazine here.

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