Business and Government Are Making Strange Bedfellows: What This Means to Restaurant Operators and M&A Opportunities






Business and Government Are Making Strange Bedfellows: What This Means to Restaurant Operators and M&A Opportunities

Trinity Capital’s Insiders Conference on March 8 to Address These Issues and More

Business and Government Are Making Strange Bedfellows: What This Means to Restaurant Operators and M&A OpportunitiesNow more than ever, federal and state governments are entangled in the business community, including and especially the restaurant industry, the country’s second largest employer. From day to day operations to long term growth plans, regulation and taxation are impacting restaurant businesses.

“Through regulation, taxation and Federal Reserve policy, government has become completely intertwined in the business community. It’s imperative to understand what’s going on in state capitals and in Washington to be able to successfully navigate business issues in 2018 and beyond,” says Kevin Burke, founder and managing director of Trinity Capital, a boutique investment banking firm in Los Angeles.

Burke, a trained economist, and other industry professionals will address this changing landscape at the Trinity Capital March 8 Insider’s Conference, entitled Attracting and Optimizing Restaurant Investment: Strategies for Today’s Environment. The one-day conference, to be held at the Ritz Carlton, Marina Del Ray, is targeted to c-level executives, multi-unit operators and owners.

The upside to the recent tax reform is that mid-sized restaurant operators, particularly multi-unit, multi-concept franchisees, can take advantage of the new tax laws to diversify their assets and even seek lucrative exit strategies.

“Tax reform makes middle market companies even more valuable to buyers and creates a generational opportunity ?to transfer wealth out of one’s estate,” says Bruce Munster, managing director, Wealth Management at Merrill Lynch, Pierce, Fenner  & Smith Inc.

As a result of the rebounding economy, buoyed by nearly nine years of growth, financial capital is no longer scarce, and it’s cheap. The key for institutions and individual investors looking to optimize a restaurant investment is the right deal.

According to Armando Pedroza, managing director of Citizen’s Bank’s Restaurant Finance Division, this abundance is generating creative options.

“With more and more capital looking for a home, we’re seeing non-traditional financing structures and capital markets executions that are new to the restaurant space– this is not your father’s franchise finance,” said Pedroza.

For operators, preparation is critical to attracting the right investment, and optimizing the return.

“This may be a unique moment in time to best position your business,” says Lawrence Braun, partner at Sheppard Mullin Richter & Hampton, who will be presenting at the conference. “High multiples, motivated buyers, lots of cash and innovative insurance products are all available. There are a number of things that can be done to avoid million dollar mistakes and maximize your chance of a successful outcome.”

Munster, Pedroza, and Braun will join Kevin Burke in presenting at the upcoming conference.

“This conference will help franchise groups and owners plan ahead for future investment and gain a better understanding of how an investment can help them grow their business, or build a valuable exit strategy,” added Trinity’s Kevin Burke.

For an invitation to the conference, please contact Lori Dietzman at Trinity Capital (310)231-3102 or ldietzman@tcib.com.