Sterling Franchise Propulsion Facilities
(SSPFs)
A breakdown of our unique M&A approach, program structure, fees, and investment focus.
Regular M&A
- Slow
- Capital intensive
- Subject to hidden liabilities
- Hefty professional fees
Our M&A
- Fast
- 5-figure deal sizes
- Free of liabilities
- Negligible financial cost
Program Details
1. Value Proposition to Clients
- Thesis: Restaurants were never meant to be rigid. High failure rates stem from the lack of tools to adapt to a dynamic market demand.
- Discounted Forward Equity: Your first-mover advantage
- Debt: Fixed income, downside protection, and fuel for operational velocity
- Market Intelligence & Synthetic Derivatives: From market risk to market share
- Enhanced Management Structure (5 Years Post-Sale): Enforcing product payoff and safeguarding investment
2. Value Proposition to Members
- Expanding the Sterling Way is capitalizing on the thousands of closures and failures happening every year.
- Our program is a co-investment where clients contribute their brand and IP, keep the original location while our companies raise debt, absorb the financial, legal, and operational complexities.
- Sophisticated legal and financial structures allow us to maximize efficiency.
- Financial products result in a much higher demand for chains.
3. Program Structure
- Onboarding
- Deal sourcing
- Acquisition
- Post-merger integration
- Iterating steps 2-4 (1-3 years)
- Initial sale
- Growth & Enhanced Management (5 years)
- Exit
4. Fee Structure
- Proceeds from forward equity, collectible unsecured tranche, downside guarantee, dilution premium
- Enhanced management fees