QSR roll-up

by a searcher

3 months ago

I have zero PE background, so curious for someone smarter than me to pick apart why a potential idea would clearly not make sense. I know of 3-4 off market independent ice cream shops with retiring owners that have a strong history of cash flowing. I have an experienced and awesome GM ready to go to manage these businesses. 

At first I wouldn't do anything but look for efficiencies, but over time, I'd put the shops under one new brand/franchise concept with a more premium product. (Ice cream happens to be a product I know quite well). Beyond the obvious that any roll-up is operationally hard and risky...

Do I have a potential story here for investors/myself of a combo of 3 shops doing $500K EBITDA at $1.2mm acquisition (that would be the newco -- each shop def does NOT d that)? Or better just start with the best one for myself with an SBA and being the operator

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4 comments

professional from University of Notre Dame

I’ve advised on a food franchisee roll up with a very similar strategy in NY (not ice cream, although I’ve also done an ice cream deal for a very well known east coast ice cream franchise). Happy to chat --@----.com or shoot me a DM).

2 months ago | like reply | 1 like

searcher from Pennsylvania State University

Yes just make sure your agreement is contingent upon the employees not leaving those shops. If they do then the seller would have to replace them.

3 months ago | like reply | 1 like

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