The trade publication Restaurant Finance Monitor reported more than 50 major equity investment deals from January 2006 to mid-2007, involving well-known brands such as Dunkin' Donuts, Outback Steakhouse and Sbarro.
And they're not alone. Restaurant deal broker Jesse Lyon, a partner at law firm Davis Wright Tremaine, says there's a growing interest in private equity in food service and hospitality companies across the country. Restaurant chains are turning to private equity, Lyon says, to get funding faster. Private equity firms look for mixed ingredients in a restaurant investment, including a solid track record of success with multiple units, a strong trademark or brand identity, an experienced management team, good cost controls, and well-documented operations and training procedures.
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