MasterClassTM

Capital Roundtable

 

 

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Association Partners

Research Partners

Capital IQ

mergermarket

Media Partners

The Deal

 

 

 

 

 

 

Clear the date October 27 on your calendar!

CLICK HERE now to register before it's too late!
 

All-NEW Conference

For Middle-Market Private Equity

 & Mezzanine Investors & Lenders

 

 

 

Private Equity Investing

In Franchise Companies
How to Identify, Analyze,
& Profit from Their Hidden Values

 

  Attendance Is Limited!

  CLICK HERE to Register Now

                         

CHAIRED BY

James J. Goodman, President
Gemini Investors

 

Featuring 20 Expert Speakers Including --

  • Marc C. Bergschneider, Starboard Capital Partners LLC
  • Bo Briggs, Croft & Bender LLC
  • Kevin T. Burke, Trinity Capital LLC
  • Robert O. Daniel, GE Capital, Franchise Finance
  • Jay G. Finkelstein, DLA Piper US LLP
  • Amy V. Forrestal, Brookwood Associates LLC
  • Rex H. Green, BB&T Capital Markets
  • William Grody, Boxford Consulting LLC / FranChoice
  • Darrell Johnson, FRANdata
  • Samuel L. Katz, TZP Group LLC
  • William P. Logan, KarpReilly LLC
  • Bret Lowell, DLA Piper US LLP
  • J. Oliver Maggard, Caymus Partners LLC
  • David P. Malm, Webster Capital LLC
  • Margaret A. Montague, Fidus Partners LLC
  • William A. Morrissett, Edgeview Partners LLC
  • James T. Rich, Gemini Investors
  • Samuel L. Shimer, SLC Capital Partners LP
  • Andy Smith, McLean Group LLC
  • Geoffrey P. Teillon, Pouschine Cook Capital Management LLC
  • Michael B. Weinberg, Levine Leichtman Capital Partners Inc.

 

Click Here to Register >>   Purchase Audio Package >>

 


 Visit Audio Library >>    Add to Outlook Calendar >>

 

FULL-DAY MASTERCLASS

Thursday, October 27, 2011

8:00 am – 5:00 pm
New York City 

Designed to Meet the Needs of GPs, LPs, & Managers of Buyout, Growth Equity, Mezzanine, & Lending Funds, as Well as Independent Sponsors, Operating Partners, Portfolio Company Managers, and the Bankers, Lawyers, Accountants,

& Other Advisors Who Support Them

Faculty | Schedule | Registration | Location | Sponsorship | Audio Package |

From restaurants to auto repair to business services, franchising companies are more and more in the spotlight as highly desirable targets for private equity investors.  

 

Simply put, successful franchising companies -- whether the entire headquarters system or a large territorial operator -- offer both well-advertised brand names and predictable revenue streams.

 

This is why many franchise acquisitions typically carry high multiples.  In fact, Nation’s Restaurant News has noted that fast-food franchisors often bring multiples of six to eight times EBITDA, compared to only four to five times for non-franchise fast food companies.

 

Yet investors have to work for the rewards -- the due diligence required in franchise company deals can be greater than you’d expect.  The relationships between franchisor and franchisees can range from supportive to demanding, streamlined to tangled, in any combination.  Finding the true value of a deal can involve complex dissection of all the layers making up the ownership structure.

 

          To bring investors a comprehensive look at the basics, the trends, and the tactics

          of investing in franchising companies, The Capital Roundtable is pleased to

          announce an all-NEW conference on Thursday, October 27, in New York.  

 

          It’s the place to discover why there have been so many recent successes, and

          how you can participate.

 

So whether you're seeking a premier investment opportunity for 2012, or a proven growth strategy for your current portfolio companies, plan now to join us for --

 

Private Equity Investing

In Franchise Companies --

How to Identify, Analyze,

& Profit from Their Hidden Values

 

Plus when you sign up now for this conference, you can take advantage of our Early Bird Discount -- a generous savings of $400!

 

Franchisors tend to trade at a meaningful premium to a typical non-franchise company, in large part because they have ultimate control of the brand and the concept.  Franchisees, on the other hand, usually trade at a meaningful discount.  As you’d expect, each side of the coin has its own challenges and considerations.

 

With a franchisor, due diligence is in large part about determining the relationship with its franchisees -- the operating structures, the training procedures, the recruitment issues, and most telling, the litigation history -- the instances of franchisors who have never had a franchisee lawsuit are few and far between.

 

A franchisor has to be good not just at executing its concept, but at marketing to franchisees and helping them become successful.  In essence, it must excel at three different businesses -- operations, sales, and training.

 

What’s more, it must have the right mix between company-owned and franchisee locations. For example, typically in the QSR (quick service restaurant) category, franchisors own between 10% and 30% of the chain -- enough to set an operations example for their franchisees and be one of the largest operators.  There are some franchisor models, however, where 95% or more of the locations are franchisees -- so the franchisor doesn’t necessarily need to be a good operator to succeed, just a good marketer.

 

Franchisees must pay close attention to their trading areas -- whether or not they have possibilities to expand geographically.  To any restrictions in what they must buy from the franchisor and what they can purchase locally.  And especially to how harmonious the relationship is with the franchisor -- a situation most often exacerbated when projections are made to franchisees that never come to pass.

 

          (However, the existence of an independent council of franchisees, separate from the

          franchisor’s own “official” franchisee council, is not necessarily a sign of discontent.

          Many franchisees prefer to have a group of their own, so dual councils are common.)

 

On the franchisor side, recent private equity activity has included Gemini Investors helping take the highly successful Buffalo Wild Wings concept public, and investment in the fast-growing Jan-Pro commercial cleaning system.  With their franchise fees rolling in every month, these companies can be great cash flow generators.

 

There has also been substantial activity with PE firms buying large franchisees with 25 to 50 Burger King, Taco Bell, or other QSR units -- companies that typically have good cash flow, and an average of 10 to 15 million EBITDA selling between 4.5x and 5.5x.

 

         To serve as chair of this all-NEW conference on Thursday, October 27, in New

         York, we’re delighted to welcome James J. Goodman, President of Gemini

         Investors in Wellesley, Massachusetts -- who’s completed many recent

         successful franchise deals.

 

          Jim has been an investor in private middle-market companies for the last 22 years.  

          Since 1993, when he founded Gemini’s predecessor firm, he has raised five private

          equity funds and completed investments in more than 90 different companies.  During

          his investment career, he has been a director or board observer for over 35 portfolio

          companies.  A speaker at numerous industry conferences and events, Jim received

          his AB, JD, and MBA degrees from Harvard University and is a member of the State

          Bar of California.

 

The Latest Industry Information from 20 Franchise Experts

 

Joining Jim will be a team of 20 panelists sharing their vast experience with franchising company deals.  You’ll hear from GPs, portfolio company operating executives, investment bankers, lenders, consultants, and more -- bringing you a 360˚ look at this timely marketplace.

 

You’ll discover why franchising is showing up more and more on investment committees’ radars.  And you’ll learn which specific segments of franchise operations are likely to provide the best opportunities in the months to come -- a group as varied as home improvement concepts, commercial and residential landscaping, and even dog walking.

 

And we’ll explain why regulations are less onerous than they appear at first glance.  While franchising laws vary from state to state, and some are more supportive than others, this variability usually does not affect day-to-day operations like franchisee contracts and operations rules -- just litigation should it ever develop.

 

You’ll leave this conference with an up-to-the-moment knowledge of who’s doing franchising right, what pitfalls to avoid, and what areas most merit your attention.  We’ll also cover how the playing field differs with international markets -- intermediate master franchisees with large swaths of territory who recruit and train small franchisees themselves are often the norm.

 

Register now to hear answers to the questions you’re sure to have --

 

  • What specific segments of franchise operations marketplace are likely to provide investors with the best opportunities for 2012?
  • What are some of the main reasons that PE firms like investing in franchising companies?
  • How do the relationship dynamics between franchisor and franchisee affect profitability?
  • What should investors know about federal and state regulation of franchising companies?
  • What are the special demands of due diligence for franchising company deals?
  • Are there potential pitfalls where franchisees may be perceived as W-2 employees rather than independent businesspeople, and how do you avoid them?
  • What are the biggest mistakes that franchisors often make -- such as being too loose with the franchisees they accept?
  • Conversely, what are the biggest mistakes that franchisees often make -- such as being too geographically dispersed?
  • How do you tell if there is a franchising opportunity for your existing consumer services portfolio companies?
  • And much, much more.

Take Advantage Of Exceptional Networking Opportunities

 

Contacts and connections are a large part of your success in the franchising marketplace, and this conference will help you develop key relationships.  We’ve built ample time into the agenda, including session breaks and an open lunch, where you can meet fellow attendees and featured speakers to exchange ideas and business cards.

 

You should attend this conference if you are a --

 

  • GP or LP looking to invest in franchising companies.
  • Operating partner or operating executive of a franchising company.
  • Hedge fund manager or venture capitalist seeking investments in this area.
  • Lender wishing to participate in franchising company transactions.
  • Investment banker pursuing deals within the franchising industry.
  • Attorney or advisor who focuses on the franchising space.
  • Executive search professional recruiting for the private equity industry.

 

          Remember, register with our Early Bird Discount by September 16, 2011, and you’ll

          save $400 off our standard fee!  Please make your reservation now so you’re not

          disappointed.  We’ll be looking forward to greeting you.

 

For more information, please feel free to contact Shaina Mardinly at 212-832-7333 ext. 0 or smardinly@capitalroundtable.com.

 

This conference is being produced by The Capital Roundtable, America’s leading conference organization focusing on “need-to-know” information for professionals in the middle-market private equity community. For more information about The Capital Roundtable’s 30 annual MasterClasses and other events and programs, please visit www.capitalroundtable.com.

The Capital Roundtable thanks DLA Piper US LLP and Quatrro FPO Solutions LLC for sponsoring this outstanding event. It’s due in great part to their collaboration and support that we have the resources to make this event so worthwhile for you.

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Faculty

Chaired By

  • James J. Goodman, President, Gemini Investors

Hosted By

  • Burt Alimansky, Managing Partner, Alimansky & Bethell Group, and Chairman, The Capital Roundtable

Speakers

  • Marc C. Bergschneider, Managing Member, Starboard Capital Partners LLC
  • Bo Briggs, Managing Director, Croft & Bender LLC
  • Kevin T. Burke, Managing Director, Trinity Capital LLC
  • Robert O. Daniel, Senior Vice President, GE Capital, Franchise Finance
  • Jay G. Finkelstein, Partner, DLA Piper US LLP
  • Amy V. Forrestal, Managing Director, Brookwood Associates LLC
  • Rex H. Green, Head--Consumer Group, BB&T Capital Markets
  • William Grody, President & Consultant, Boxford Consulting LLC / FranChoice
  • Darrell Johnson, President & CEO, FRANdata
  • Samuel L. Katz, Managing Partner, TZP Group LLC
  • William P. Logan, Partner, KarpReilly LLC
  • Bret Lowell, Partner, DLA Piper US LLP
  • J. Oliver Maggard, Managing Partner, Caymus Partners LLC
  • David P. Malm, General Partner, Webster Capital LLC
  • Margaret A. Montague, Director, Fidus Partners LLC
  • William A. Morrissett, Partner, Edgeview Partners LLC
  • James T. Rich, Managing Director, Gemini Investors
  • Samuel L. Shimer, Principal, SLC Capital Partners LP
  • Andy Smith, Managing Director, McLean Group LLC
  • Geoffrey P. Teillon, Principal, Pouschine Cook Capital Management LLC
  • Michael B. Weinberg, Managing Director, Levine Leichtman Capital Partners Inc.

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Schedule

 

MasterClass
07:30 - 08:15
08:15 - 08:45
08:45 - 09:45

09:45 - 11:00

11:00 - 11:30

11:30 - 12:30



12:30 - 01:45

01:45 - 02:45



02:45 - 03:30
03:30 - 04:30

04:30

  

Thursday, October 27, 2011

Registration, Networking, & Continental Breakfast

Welcoming Remarks & Audience Introductions

Chairman’s Keynote -- "Investing in Franchise Companies -- What to Consider, Do, and Avoid”

First Panel -- “From the Trenches -- Five Private Equity Investors Report the Strengths & Weaknesses in Investing in Franchise Companies”
Coffee & Networking Break

Second Panel -- “Sourcing Deal Flow & Financing -- What Five Key Investment Bankers & Lenders Are Telling Their PE Clients About Buying Franchise Companies"
Luncheon & Networking

Third Panel -- “Due Diligence, Deal Structuring, & Pricing-- Four Top Deal Professionals Explain How They Identify & Navigate the Unique Issues of Franchise Deals”
Featured Keynote -- "The Franchise Industry Size, Appeal, & Opportunity"

Fourth Panel -- “Exiting Franchise Companies -- How to Prepare for the Most Profitable Liquidity Events”
Networking & Adjournment

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Registration

  • Early Bird Registration Fee -- and save $400 off the standard fee! Register by Friday, September 16, and the fee for the MasterClass is $995.
  • Premiere Registration Fee -- save $200 off the standard fee! Register by Friday, October 7, and the fee for the MasterClass is $1195.
  • After that, the standard fee is $1395 for the MasterClass.
  • At the door, if space is available, the fee is $1495 for the MasterClass.
  • Special group rates -- The Capital Roundtable offers a special discount for 2 or more people.  For more info, please contact Shaina Mardinly smardinly@capitalroundtable.com or 212-832-7333 ext 0.


Click Here to Register >>    Purchase Audio Package >>

 

 Visit Audio Library >>    Add to Outlook Calendar >>

 


You can pay by credit card (using the links above) or by check. Mail your check and business card to: New York Business Roundtable Inc., 12 East 44 Street, Penthouse, New York, NY 10017.

If the program is oversubscribed, we will notify you immediately and not charge your credit card.  (If you need to cancel, please do so by Thursday, October 20 at 5:00pm, and we will credit you for a future MasterClass.)


From time to time, for reasons beyond Capital Roundtable's control, program schedules and speakers become subject to change.  We make every effort to announce substantive changes by email to registrants at least 48 hours in advance.

Have a special question?  Please contact Shaina Mardinly at 212-832-7333 ext.0 or by email at smardinly@capitalroundtable.com.

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Location

The University Club
College Hall -- First Floor
One West 54 Street (at 5th Avenue)
New York City

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Audio Package

Can't attend but want to hear the program? You can buy the audio package along with the handouts. Purchase the audio package online now.

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Sponsorship

The Capital Roundtable offers excellent marketing and business development opportunities to reach the middle-market private-equity community . For more details, please contact Dana DeMattia at 212-832-7333 or by email at ddemattia@capitalroundtable.com.

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