Multi-Unit Franchisee Magazine Issue III, 2013 | Page 81
there may be an adjustment to eliminate
intercompany rent, non-recurring costs,
or to normalize G&A to industry standards in the event an operator is expensing
personal items through the company that
result in an overstated G&A expense. But
some sellers want to make unrealistic adjustments to their financials; these might
include eliminating a valid operating expense or compensation. This is not the
seller you want to be. Most buyers will
figure this out quickly, and will perceive
the seller with mistrust.
The solutions
are not always
simple, but
not having a
solution is certain
to derail your
transaction.
If you think you are really ready to
sell, have you considered the points presented above? The solutions are not always simple, but not having a solution is
certain to derail your transaction.
Proactively deal with these issues early
on, rather than reacting to them when
they crop up during the process. Rely on
your trusted advisor to help you navigate
through the process to ensure a successful outcome.
Dean Zuccarello, CEO
and founder of The Cypress
Group, has more than 30
years of financial and transactional experience in mergers, acquisitions, divestitures,
strategic planning, and financing in the restaurant industry. The
Cypress Group is a privately owned investment bank and advisory services firm focused
exclusively on the multi-unit and franchise
business for more than 22 years. Contact
him at 303-680-4141 or [email protected].
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