“Private Equity Opportunities”		«BACK
	KM Outlook - Observations From an Industry Leader
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It is an exciting time for private equity investors. Recent developments in the multi-unit retail industry create tremendous opportunities. Krass Monroe is pleased to be a part of helping investors recognize and take advantage of these opportunities. Below is a list of some of our observations:

• Restaurants can be purchased at reasonable prices.
• Deals can be made with reasonable leverage and at favorable interest rates.
• Cash flow can support a reasonable return on mezzanine and equity capital investments.
• Investments can be structured in a variety of ways, including subordinated debt, preferred equity interest, warrants or various combinations.

• Many experienced operators are looking to cash out a portion of their investment while continuing to grow successful companies.
• Undervalued companies are available for roll-up and continued expansion with appropriate capital structures and high quality management teams.
• Additional tax benefits may now be available through cost segregation and bonus depreciation. Franchisors are more receptive to passive equity investors.

• Franchisees can no longer grow and develop their businesses solely with senior debt financing.
• Franchisors recognize the need to attract mezzanine and equity capital in order to fund continued growth of their franchise systems.

• Self-funded or sponsor-backed management buyouts are increasingly common.
• Consolidations and roll-up activity by other investors/operators have increased.
• A secondary market appears to be developing among investors to cycle in and out of investments.

At Krass Monroe, we have the experience, industry expertise and networks to help you take advantage of these exciting opportunities. For additional information please call Randy Evans, Richard Gibson, Dennis Monroe or John Berg at 952-885-5999.