Multi-Unit QSR
Regional QSR platform consisting of 97 restaurants across five states — 61 company-owned and 36 franchised — generating $120.3M LTM revenue and $18.1M adjusted EBITDA (15.0% margin).
Buy-side financial and commercial due diligence supporting a confidential PE sponsor evaluating a control acquisition / majority recapitalization. Indicative valuation of 7.5x–8.5x Adj. EBITDA, with an illustrative base enterprise value of ~$144.8M at 8.0x, financed with ~4.0x debt/EBITDA and a ~20% founder equity rollover.
Revenue grew from $98.4M to $120.3M (10.6% CAGR) while Adj. EBITDA margin expanded ~200bps to 15.0%. Mature locations generated ~$2.05M AUV and 24.8% four-wall EBITDA margins. Eight underperforming locations diluted consolidated EBITDA margin by ~90–110bps, and a further 34 stores required an estimated $1.9M of deferred capex.
8.7/10 attractiveness. Recommendation: proceed to exclusivity, subject to confirmatory QoE, a capex reserve and operational remediation at underperforming locations.
Concise transaction screening assessment covering the investment thesis, financial profile and key diligence considerations.
View Screening Memo →Detailed buy-side financial due diligence covering quality of earnings, unit economics, operating performance, capex, valuation, transaction considerations and value creation.
Leverage Strategic is led by Prashant Gupta, CA, MBA, bringing 10+ years of experience across transaction advisory, M&A, corporate strategy and investor relations. About Prashant → | LinkedIn →