Deal Breakers for Investors Looking to Acquire Franchise Systems
Corporate / M&A Law, Franchise & Distribution Law

10 Potential Deal Breakers for Sophisticated Investors Looking to Acquire Franchise Systems

The investment community has been increasingly interested in franchise systems as potential targets. They present a valuable investment proposition for strategic and financial investors. The appeal of robust, long-term, and diversified royalty income streams, proven business concepts, potential for scalability and expansion, shared expansion costs (i.e. with franchisees), and the goodwill and strength of an established brand has caught the attention of private equity funds, family offices, and other sophisticated acquirers. The strategy and structure of investments is also becoming more creative and flexible as investors get more comfortable with the franchise business model, including investments at the master franchise level, and aggregation of brands in the same industry (or similar industries) to achieve economies of scale. However, sophisticated acquirers (as many know), explore, consider, and pass on far more opportunities than they take up. So what are the critical franchise specific considerations that raise red flags for sophisticated investors looking to acquire a franchise system?

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Corporate / M&A Law

Dickinson Wright Advises on Cross-Border Tech Acquisition

Tech PicDickinson Wright, Canada’s leading full-service business law firm specializing in cross-border legal transactions, is pleased to announce that it acted as counsel to Automationforce Inc. (an Ontario-based technology corporation) in connection with the sale of certain proprietary substation design productivity software to Autodesk Inc. (a US-based global technology corporation). Continue reading

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Corporate / M&A Law

Dickinson Wright Advises Sportech on NYX Transaction

sportech-nyx-resorts-casinoDickinson Wright, Canada’s leading full-service business law firm specializing in cross-border counsel, is pleased to announce that it acted as legal counsel to Sportech plc (London Stock Exchange), a leading international sports gaming and entertainment company, in the divestiture of its 50 percent interest in Sportech-NYX Gaming, LLC to its joint venture partner, NYX Social Gaming LLC, a wholly owned subsidiary of NYX Gaming Group Limited (Toronto Stock Exchange), an online gaming content and technology provider. Continue reading

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Corporate / M&A Law

Dickinson Wright Advises Hong Kong Investors on Canadian Acquisition

Browne Poon transactionDickinson Wright is pleased to announce that it acted as legal counsel to a consortium of Hong Kong investors in the acquisition of a majority interest in Browne & Co. and its affiliated companies. The Browne group of companies is engaged in the production and distribution of food service and retail housewares products around the world. The completion of this transaction and the introduction of new management places the Browne group of companies in a stronger competitive position in its industry. Continue reading

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