Pre-close · Multi-Unit Restaurants

Independent Sponsor State Tax Planning in Multi-Unit Restaurants

Securities and M&A counsel for independent sponsors planning multi-unit restaurants transactions, from LOI to close to the capital markets that open up afterward.

EV range $8M to $80M EV EBITDA $2M to $14M Audience Buy-side / Sponsor
The deal context

State Tax Planning on multi-unit restaurants deals is one of those workstreams that looks routine on a checklist and decides outcomes in practice.

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.

The moves

How State Tax Planning actually gets structured.

  1. Map nexus exposure in every state the target operates in, including remote workers.

  2. Plan sales tax succession liability, particularly in California, New York, and Texas.

  3. Address pass-through entity tax (PTET) elections where federal SALT cap matters.

  4. Document state-by-state qualification for the new entity post-close.

  5. In multi-unit restaurants, layer in franchisor LOI letter requested before market as part of the State Tax Planning workstream.

The common mistake

Assuming state tax is a closing-mechanics issue. It is a valuation issue when the historic liability is large.

Jason's take
"State tax is where the seller's lawyer forgot to look. The buyer always pays for it."
Jason Powell · State Tax Planning
Capital after close

The deal is one thing. The capital that opens up after close is another.

Capital after close is where the IRR actually gets made. The right introductions at month nine through month thirty are where this practice works as hard as it does at the LOI.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
WORK WITH JASON

Bring the multi-unit restaurants deal. Get State Tax Planning done right.

Direct counsel from a securities and M&A attorney with billions in structured transactions, the independent-sponsor-native playbook, and the capital markets network that opens up post-close.