Debt & Distressed Assets

Debt & Distressed Assets

by Aaron Allen
Restaurant Consultant, Speaker & Industry Analyst
Aaron Allen & Associates

Debt represents an average 90% of restaurant assets. With these numbers, raising interest rates can be fatal for some — and fortune-building for others.

In many cases, recessionary M&A involves distressed and dislocated assets that can be purchased for pennies on the dollar. However, it’s not always predatory or unwelcome.

In this article, we examine what’s happening in the markets for private debt secondaries, private equity secondaries, and how these trends affect restaurant chains in debt. Whether you are a lender, investor, operator, part of a management team, or in executive leadership, you can benefit from looking at debt through this lens. We are expecting to see a lot of debt sold on the secondaries markets in the coming months.

Aaron Allen & Associates works alongside senior executives of the world’s leading foodservice and hospitality companies to help them solve their most complex challenges and achieve their most ambitious aims, specializing in brand strategy, turnarounds, commercial due diligence and value enhancement for leading hospitality companies and private equity firms.

Our clients span six continents and 100+ countries, collectively posting more than $300b in revenue. Across 2,000+ engagements, we’ve worked in nearly every geography, category, cuisine, segment, operating model, ownership type, and phase of the business life cycle.