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Exit Strategies

In nearly 30 years since founding The Cypress Group, I have encountered a multitude of client types on both the buy and sell sides. While the unique circumstances of each deal can vary significantly, a number of common threads can make or break a divestiture or acquisition.
  • By Dean Zuccarello
  • 7,624    0
The M&A marketplace has seen some impressive activity over the past few years. Theoretically, this should have created a positive environment for all people looking to execute an M&A transaction.
  • By Dean Zuccarello
  • 5,130    0
Financial and first-time buyers are showing tremendous interest in the franchise space. Yet as they are continually outbid for attractive opportunities, the frustration in entering certain systems may be at an all-time high.
  • By Dean Zuccarello
  • 3,940    0
Many of the topics we address as a firm focus on the technical aspects of a transaction, such as market observations, quantitative measurements, and other deal points, but seldom do we discuss the emotional side.
  • By Dean Zuccarello
  • 3,501    2
Many of the topics we address as a firm focus on the technical aspects of a transaction, such as market observations, quantitative measurements, and other deal points, but seldom do we discuss the emotional side.
  • By Dean Zuccarello
  • 5,083    0
It seems we read about more and more franchise acquisitions every day, where one franchisee becomes larger by purchasing another. Franchisees seem to be growing ever greater in size, with fewer small franchisees in the marketplace.
  • By Dean Zuccarello
  • 4,646    0
After several months of testing after an initial diagnosis by your family doctor, you now must schedule surgery for a heart condition.
  • By Dean Zuccarello
  • 4,119    0
Historically in franchising, real estate was coveted as a key strategic asset. Most franchisees overwhelmingly preferred to acquire the real estate as part of any new development and/or acquisition they were contemplating.
  • By Dean Zuccarello
  • 4,361    0
Successfully operating a multi-unit franchise--typically generating millions of dollars in revenue from many locations--requires a keen awareness that leading multiple units is fundamentally different than leading a small operation.
  • By Robert Sher
  • 4,884    0
Planning, planning, planning. We all participate in some form of planning: what to do with our weekend, scheduling all the kids' activities, forecasting next year's business plans, and maybe even "someday" plans.
  • By Dean Zuccarello
  • 4,249    0
In wrestling with this question, it is clear that so-called loyalty programs are really rewards programs.
  • By Jack Mackey
  • 3,998    0
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In March 2013, U.S. banking regulators issued new guidance designed to curb increasingly aggressive lending by both banks and finance companies.
  • By Dean Zuccarello
  • 2,589    0
Whether the mergers and acquisitions market is in a hot upswing or in a down cycle, one valuation measure remains the primary focus in nearly all transactions: the multiple of EBITDA (or cash flow).
  • By Dean Zuccarello
  • 5,525    632
More and more small business owners are selling their companies, with sales hitting a four-year high in early 2013 in the United States, and Canada predicting its largest small business turnover ever in the next five years.
  • Multi-Unit Franchisee
  • 2,556    21
Recently, we represented a multi-unit operator in the sale of a tier-one franchise business that had to overcome numerous hurdles to achieve a successful outcome.
  • By Dean Zuccarello
  • 3,102    0
Multi-unit franchise operators are about to exceed the 55 mph speed limit (or in this case, the 55% limit).
  • By Darrell Johnson
  • 5,152    42
You've heard it before, and have likely seen it firsthand in the market: interest rates are at historic lows, franchisee consolidations and refranchisings are prevalent, lenders are hungry, pent-up equity is available and waiting to be deployed, and deal activity is high.
  • By Dean Zuccarello
  • 2,327    0
We are experiencing a rare alignment of stars in the franchise finance world right now, and it's essential that operators act quickly to take advantage of this situation, before the party's over. To understand the current financing environment, let's take a look at the economic "big picture."
  • By Dean Zuccarello
  • 2,873    20
Welcome to 2018. The future of franchising is upon us. What does the landscape look like?
  • By Dean Zuccarello
  • 3,667    0
The decision to sell your successful multi-unit business is now firmly on the horizon.
  • By Dean Zuccarello
  • 4,222    0
During the initial stages of an exit strategy engagement with our clients, we spend considerable time gaining a full understanding the client's business.
  • By Dean Zuccarello
  • 5,500    0
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We have made progress digging our way out of the pit of economic meltdown we tumbled into in 2007, but we certainly have a long way to go before we experience the vibrant economy we enjoyed in much of the 1990s and the early to mid-2000s.
  • By Dean Zuccarello
  • 2,945    0
When sellers are contemplating a decision regarding the sale of their business, they overwhelmingly select the bidder with the highest price, only to find afterward that this might not have been the best decision for their circumstances.
  • By Dean Zuccarello
  • 3,383    0
Interest rates right now are low—very low. They've been low for a while. And they're expected to remain low for the foreseeable future
  • By Dean Zuccarello
  • 2,799    0
Gordon Gekko, the main character in the 1987 blockbuster film Wall Street, quickly became a popular cultural icon of unrestrained greed.
  • By Dean Zuccarello
  • 4,631    0
Many restaurant operators and dealmakers are hoping for a return to the pre-2008 environment, when multiples were robust, liquidity was flowing, equity was prolific, and debt capital was plentiful.
  • By Dean Zuccarello
  • 4,432    0
Family and entrepreneur-run businesses face many unique and complex challenges, including succession planning. Generally, family businesses are more than just a place of work; there is emotional as well as financial capital tied up in the business, and passing on the family legacy can be stressful and fraught with difficulty.
  • By Dean Zuccarello
  • 3,690    0
Over the past 25 years, franchising has continued to develop and become more sophisticated. The reins of the franchisor have passed from the pioneering founders to established management teams with significant industry experience. Today, many of these companies are publicly traded or majority-owned by institutional equity investors.
  • By Dean Zuccarello
  • 3,710    0
As we work our way out of the current recession, we are already starting to see early signs of life in the merger and acquisition market.
  • By Dean Zuccarello
  • 2,256    69
Historically, franchising has accepted EBITDA as the benchmark for establishing valuation. However, as seen over the past several years, valuations can vary widely across franchisors, franchisees, and company-owned concepts. Franchising has seen transaction multiples ranging from the low single digits up to lofty double digits. So what is the justification for this wide range in transaction multiples? What makes a buyer willing to pay 8x for one deal, but only 4x for another?
  • By Dean Zuccarello
  • 11,403    1,835
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