Multi-Unit Restaurants Real Estate Carve-Outs: An Independent Sponsor's Counsel
Structuring Real Estate Carve-Outs on multi-unit restaurants deals, with the structure protection and capital connectivity an independent sponsor actually needs.
Every multi-unit restaurants acquisition has its own gravity. Real Estate Carve-Outs is the workstream where independent sponsor counsel earns the seat.
The typical multi-unit restaurants platform sits at $8M to $80M EV with EBITDA in the $2M to $14M range. The thesis runs on franchisee roll-up or regional concept acquisition. The franchisor consent letter is the deal. Get it lined up before you spend money on diligence.
How Real Estate Carve-Outs actually gets structured.
Separate operating real estate into a single-purpose entity pre-close.
Document an arm's-length lease with renewal options and assignment rights.
Address title, survey, and environmental on each parcel.
Coordinate the real estate close with the operating company close.
In multi-unit restaurants, layer in franchisor LOI letter requested before market as part of the Real Estate Carve-Outs workstream.
Leaving the real estate inside the operating company. The buyer pays a higher multiple than the real estate deserves.
"Real estate trades at a different multiple than the business. Separate it, lease it, manage it."Jason Powell · Real Estate Carve-Outs
The deal is one thing. The capital that opens up after close is another.
Refinancing, recaps, growth rounds, and the right strategic conversation eighteen months early are all downstream of relationships that take years to build and minutes to use.
Related deal pages.
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Working Capital Adjustments for Multi-Unit Restaurants
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Real Estate Carve-Outs for Healthcare Services
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Real Estate Carve-Outs for Home Services
regional roll-ups of HVAC, plumbing, and electrical operators
An LOI on the desk, a multi-unit restaurants target, and a Real Estate Carve-Outs question worth a real conversation.
Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.