Multi-Unit Franchisee Magazine Issue II, 2011 | Page 93

FOR THREE YEARS RUNNING, BOJANGLES’ HAS BEEN
ONE OF THE FASTEST GROWING RESTAURANT CHAINS
IN THE COUNTRY. WE’RE NOT SLOWING DOWN.
COME SEE WHY-®

fact, and many opportunistic buyers think
they can steal good deals in the current environment. The realities of the marketplace
are that few “distressed” deals get done.
In actuality, many bankrupt companies sell
for higher prices than anticipated, unless
the performance has deteriorated to the
point where the company has questionable
life as a going concern. Buyers should be
diligent but realistic, and focus more on
how they can logically improve the cash
flow of the business than on buying for
the lowest possible valuation. If buyers
are too aggressive on deal pricing, sellers
simply will go away and resurface when
conditions improve.
M&a slowly recovering

The second half of 2010 witnessed a significant improvement in terms of deal
activity, and we expect 2011 and beyond
to improve on that momentum. While the
environment has yet to reach pre-2008
levels of deal activity and buyer interest,
Cypress is observing the rumblings and
positioning among the industry players,
evidence of their renewed and heightened
interest in M&A transactions. The level
of scrutiny in deal due diligence remains
high, as private equity firms and some
underleveraged strategic buyers become
more active, but we have no doubt that
the players are getting ready for the game.
Sure, there is some caution in the