Amid favorable conditions for optimizing sales and financing, the boutique investment firm Trinity Capital recently assisted two clients in the sale of their restaurant businesses and helped another to secure a new credit facility.
“Restaurant valuations are flirting with all-time highs, driven by plentiful bank financing, low interest rates and buyers with ample capital to close transactions,” said Kevin Burke, founder and managing partner of Los Angeles-based Trinity Capital. “Now is a good time to sell, if that’s your exit strategy, and while valuations are still attractive.”
Trinity’s recently served as the exclusive financial advisor for three completed deals:
- The sale of 31 North Carolina Taco Bell and Long John Silver’s locations by Family Foods Inc. to Flynn Restaurant Group, the largest franchise company in the US.
- The sale of CLC Restaurants, LLC’s Taco Bell locations in Central Washington to Yakima Restaurants. CLC continues to operate Taco Bell locations in Washington, Idaho and Southern California.
- Securing a new first and second lien credit facility for Pennant Foods, LLC, a leading Wendy’s franchisee with 89 locations in California and Tennessee. Trinity assisted Pennant Foods in securing financing with Capital Spring, which provides senior and mezzanine debt and preferred capital to proven operators in the franchise industry.
For Family Foods, the sale of their 31 restaurants represents the family’s exit strategy from the restaurant business.
“Trinity ran an excellent sale process with the utmost integrity, which was extremely important to our family,” said Ron Mathews, owner of Family Foods. “They were ardent advocates in representing our interests and the results of the sale process exceeded our expectations.”
Trinity Capital provides financial advice to middle market businesses regarding mergers and acquisitions, leveraged and management buyouts, debt restructuring and private placements of debt and equity. The firm, a FINRA-regulated financial advisor, combines Wall Street experience and investor relationships with boutique client service and has deep sector expertise in restaurants, consumer/retail, food and beverage, and other industries. Trinity is headquartered in Los Angeles with offices in Boston. For more information visit www.trinitycapitalllc.com.
