FRANCHISOR LIQUIDITY OPTIONS

Operations & Training

FRANCHISOR LIQUIDITY OPTIONS

September 07, 2022

drc

Sponsored content by Diversified Royalty Corpt by.

Abstract

Every great franchisor has multiple liquidity options and should evaluate:

  1. Private Equity Transaction
  2. Outright Sale
  3. Debt Recapitalization
  4. Royalty Transaction

Depending on your objectives, managerial bench-strength, growth prospects and stage of growth, each of these liquidity options could be the right solution for your franchisor business.  Evaluating each option relative to a “do-nothing” status quo will narrow down the best outcome in this potentially once-in-a-lifetime important event.

Download this white paper to obtain an overview of these options to help you when considering a major liquidity event.

About Diversified Royalty Corp.

Diversified Royalty Corp. (“DIV”) is a publicly-traded company engaged in the business of acquiring top-line royalties from well-managed, multi-location businesses and franchisors in North America.  We partner with leading franchisors, typically between 40 and 250 locations.

About the Authors

sean

As Diversified Royalty Corp’s President & CEO, Sean Morrison is responsible for the overall business as well as royalty transaction identification and negotiation.  He created the top-line royalty structure over 20 years ago and has extensive experience with several leading franchisors.  Previously, Mr. Morrison co-founded a private equity fund and was a partner at a boutique investment banking firm advising companies with respect to capital raises, IPO’s, debt restructuring, asset sales, and acquisitions.

greg

As Diversified Royalty Corp’s CFO & VP Acquisitions, Greg Gutmanis is responsible for royalty transaction execution and due diligence, as well as overall financial reporting.  He was previously the CFO and Vice President at a mid-market private equity firm and prior to that, an investment banker.  Mr. Gutmanis is a CPA and CBV and serves as a Director and Treasurer of the Lions Gate Hospital Foundation.

 

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