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FEP was recently featured in an article for Mergers and Acquisitions - themiddlemarket.com. Our Co-Managing Partner, Michael Esposito and Partner, Kevin Burke, spoke with Demitri Diakantonis to discuss the attractiveness of the restaurant franchise sector. Read the full article in Mergers & Acquisitions to learn more about FEP and our investment approach. https://lnkd.in/erWKAcud #Franchising #PrivateEquity #FranchiseDevelopment #RestaurantFranchise

Our Founder Michael Esposito spoke with Demitri Diakantonis of Mergers and Acquisitions - themiddlemarket.com about takeover targets in the franchise sector - specifically chicken franchises.   Read the full article in Mergers & Acquisitions to learn more about why certain acquisition opportunities will persist.   https://lnkd.in/egb_uzP9   #Franchising #PrivateEquity #RestaurantFranchise #ChickenFranchise

7-Eleven is making a bold move into Europe, with the UK high on the list! Over the next six years, the iconic convenience store chain plans to expand into 10 new countries, focusing on Europe as its top priority. 🌍 Starting in 2024, 7-Eleven aims to enter two new markets each year, evaluating 20 countries for their potential. They’re considering two models for expansion: partnering with local master franchises or engaging in joint ventures and acquisitions. Both strategies are designed to leverage existing networks and infrastructure to bring the 7-Eleven experience to new regions quickly and effectively. With a global goal of reaching 100,000 stores by 2030, 7-Eleven is poised for significant growth. This includes revisiting the UK, where they previously operated over 50 stores in the 1980s. https://buff.ly/3Ra0Yds 🛒✨ #7Eleven #Expansion #ConvenienceStore #GlobalGrowth #UK #Europe #RetailNews

“As we have long held, Fair Franchising is at the heart of AAHOA’s efforts to ensure fairness in the franchise/franchisee relationship,” AAHOA President & CEO Laura Lee Blake added. “Revision of Point Number 12 underscores the fact that when mergers or acquisitions take place in our industry, they most notably affect hotel owners and franchisees. It’s our hope that updates to Point 12 serve as clear-cut guidance for AAHOA member franchisees in the event of a purchase, sale, acquisition, or merger of one or more hotel brands between franchisors.” Learn more in the article from HOTEL MANAGEMENT Magazine. #hotelmanagementmagazine #aahoa #fairfranchising #hotelindustry #hotelnews #hotelfranchising #hoteliers https://loom.ly/0FNgosk

7-Eleven is making a bold move into Europe, with the UK high on the list! Over the next six years, the iconic convenience store chain plans to expand into 10 new countries, focusing on Europe as its top priority. 🌍 Starting in 2024, 7-Eleven aims to enter two new markets each year, evaluating 20 countries for their potential. They’re considering two models for expansion: partnering with local master franchises or engaging in joint ventures and acquisitions. Both strategies are designed to leverage existing networks and infrastructure to bring the 7-Eleven experience to new regions quickly and effectively. With a global goal of reaching 100,000 stores by 2030, 7-Eleven is poised for significant growth. This includes revisiting the UK, where they previously operated over 50 stores in the 1980s. https://buff.ly/3Ra0Yds 🛒✨ #7Eleven #Expansion #ConvenienceStore #GlobalGrowth #UK #Europe #RetailNews

Roark Capital is all in on Subway! This 9.6 billion dollar acquisition will make Subway Roark's largest holding according to number of restaurants and second largest holding based on sales volume, according to CNBC. Second round bids were put forth by more than 10 private equity firms including Bain Capital, TPG, and Goldman Sachs, with Roark's winning bid leading to the largest M&A restaurant deal since Roark bought Inspire Brands in 2020. The sale implies a multiple of 12.8X EBITDA according to PitchBook Data down from the multiple of 18.9X EBITDA Roark paid for Inspire brands roughly three years ago. Subway already had turn around plans in place including franchisee consolidation agreements, store renovations, revamped menu offerings, and new locations. Let's see where Roark takes this massive brand next. #subway #mergersandacquisitions #privateequity #acquisitions #foodandbeverage #fastfood #retail #retailrealestate #iaconocre #karlyiacono #commercialrealestate

HOT OFF THE PRESS: Gov't Antitrust Agency (FTC) Clears Subway Sale. Good for Franchisees, on Net, I think: "Subway, the sandwich chain that was closely held for decades by its founding families, is now officially owned by private-equity firm Roark Capital. Eight months after announcing the deal, Subway said federal regulators have signed off on the acquisition by affiliates of the Atlanta-based private-equity giant. Some doubts about the deal grew in the industry as the months passed since its announcement last August. Federal regulators in the Biden administration have scrutinized mergers, with the review process often taking months. Inspire Brands, another Roark-backed restaurant holding company, acquired sub-style sandwich brand Jimmy John’s in 2019. The Subway deal gives the private-equity firm positions in two of the biggest U.S. sub sandwich companies. The Wall Street Journal previously reported that Roark’s offer of around $9.6 billion led a heated auction for Subway. The Subway deal is the second-largest U.S. acquisition of a U.S. restaurant chain since at least 1995, according to data provider Dealogic. Subway Chief Executive John Chidsey previously has said the company would benefit from Roark’s expertise in franchising, digital ordering strategies and international development as the chain seeks to add tens of thousands of new locations around the world."

One of the biggest acquisitions in the fast food industry just happened! 🤯 Roark Capital acquired Subway for $9.6 Billion (recently listed at $10 Billion). They have investments in 20+ companies in the restaurant and food industry including Dunkin' Donuts and Baskin Robbins! Subway was a family-owned business of nearly 60 years and has other sandwich shops in its portfolio🥖 An interesting part about this deal is that Roark Capital had set a 𝐜𝐚𝐬𝐡 𝐟𝐥𝐨𝐰 𝐦𝐢𝐥𝐞𝐬𝐭𝐨𝐧𝐞 in order to pay the complete amount of $9.6 Billion 💰 For the full deal price to be paid, Subway's cash flow would need to reach certain milestones over a period spanning two or more years after the deal closes, according to sources. Without that the deal is worth $8.95 Billion–which is $650 million dollars lesser than the original price. 🤔 Here’s what I feel Roark Capital would do after acquiring Subway: ➜ Eliminate a competitor from the market as there are so many players and the fast food industry is currently saturated in the US. ➜ Increase the market share of the restaurants that are in their portfolio  ➜ Tap into Subway’s existing franchise network (there is talk of adding 23k new outlets globally!) ➜ Or they might just do it for the turnaround potential and help scale it further as it has a strong brand globally! However it’s interesting to see what they plan to do with Subway! #Subway #Acquisition #Fastfoodchains #Franchises

It was great connecting with Mergers and Acquisitions - themiddlemarket.com to discuss the dynamic landscape of restaurant deals and acquisitions within the realm of growing franchises.   Our discussion explored the thriving market of chicken franchises, which have seen a remarkable surge in market share over the past several years.   A big thanks to Demitri Diakantonis for the great article! Check out the full article below for deeper insights.   https://lnkd.in/ef5TgySD   #Franchising #PrivateEquity #RestaurantFranchise #ChickenFranchise

Seale & Associates, Inc. is pleased to present our most recent report of the restaurant franchise sector. In this report, we analyze the most significant trends and the latest business transactions that are defining the industry. The restaurant franchise industry is expected to reach US$1,023.4 billion by 2028, with the U.S. market playing a significant role in this growth. Additionally, the mergers and acquisitions (M&A) market in this industry is anticipated to see an increase in 2024. Franchises are likely to adapt to consumer preferences through innovation in menus and online ordering services. Discover the current landscape of mergers and acquisitions (M&A) in the restaurant franchise industry in our latest quarterly report. We explore in detail the valuation multiples of public companies such as Alsea, CMR SAB de CV, McDonald's, Chipotle Mexican Grill, Starbucks, among others. Moreover, we highlight the most significant transactions announced during the last quarter, providing a comprehensive view of emerging trends and opportunities in the sector. If you are interested in receiving this quarterly report and/or our monthly and sectoral reports, subscribe at https://lnkd.in/gmxEs6E4 #FranchiseGrowth #RestaurantMarket #IndustryReport #MarketAnalysis #RestaurantSector #BusinessAndFranchises #MergersAndAcquisitions #QuarterlyReport #Mergers #Acquisitions