Smooth Acquisition of a Beloved Fast-Casual Franchise

Overview

In this case study, we explore the full acquisition of a beloved fast-casual restaurant franchise in Homewood, Alabama. Our client, the seller, was looking to retire and pass on their business to an entrepreneur seeking to transition from a corporate career. This deal, completed over 12 months, is a testament to the power of mutual trust and a strong culture fit in facilitating a smooth business transition.

Key Deal Metrics

• Advised the: Seller
• Type of Deal: Full Acquisition
• Timeline: 12 months
• Earnings Multiple: 2.5x

Objectives & Reasons for the Deal

Seller’s Objective

The seller, a long-standing franchisee, was ready to retire and sought a buyer who could continue the business's legacy while maintaining its cherished position in the community.

Buyer’s Objective

The buyer, leaving a corporate job, was eager to embrace entrepreneurship and found the perfect opportunity in this well-established restaurant.

What Went Right

Cultural Alignment

The buyer was an ideal culture fit, developing a great relationship with the seller. This strong alignment facilitated a seamless transition process, proving that mutual trust and transparency can resolve many closing process issues.

Seamless Transition

The excellent relationship between the buyer and seller smoothed the transition, ensuring continuity and stability during and after the acquisition.

Areas for Improvement

Buyer Search Challenges

Finding the right buyer took longer than anticipated, emphasizing the importance of patience and persistence in aligning with the ideal buyer profile.

About the Business

The company, one of the oldest active franchisees of a beloved fast-casual brand, is a main street restaurant in Homewood, Alabama. It specializes in lunch and catering, building a strong community presence through consistent quality and service.

Deal Partner Highlight

Harbert Realty, the property management and leasing group, facilitated the lease assignment process seamlessly. Dean Nix, in particular, was organized, communicative, and thorough, going above and beyond to help achieve the last major milestone before closing.

Conclusion

This acquisition showcases the importance of cultural alignment and trust in successful business transitions. Our brokerage’s dedication to facilitating such aligned deals ensures that both buyers and sellers can achieve their goals, even when faced with challenges like prolonged buyer searches. Our expertise, integrity, and partnerships allow us to support diverse client needs across various industries.