Restaurant Chain – Business Planning

A 15 unit restaurant chain engaged Goldstar to develop a long-term financial plan and its first set of detailed five-year financial projections. We created a dynamic model with several growth scenarios and guided the CEO and CFO to the optimal financial strategy. We also structured a plan for financing the growth and advised management on the key metrics that strategic buyers seek and the company’s real estate strategy.

Management has begun implementing the recommended financial plan that will grow the chain to 50 restaurants over the next few years.

Swoozie’s – Capital Raise and Acquisition

Swoozie’s, an Atlanta, GA based specialty retailer, offers a unique assortment of party goods, housewares, personalized gifts, invitations, stationery and accessories. The company had 14 stores and needed capital for expansion. We created materials to market the company and contacted potential investors which resulted in multiple offers. Within a few months we successfully raised $10 million from two well respected private equity funds with experience in retail. Swoozie’s used the capital to expand to 43 stores.

About three years after the capital raise, Swoozie’s retained Goldstar to advise it on a potential acquisition of a leading online stationery company. Goldstar performed due diligence, analyzed the acquisition’s financial impact, created a deal structure and worked with outside legal counsel to draft the purchase agreement.

Frozen Food Brand – Pre-Sale Preparation

A fast growing frozen food brand selling its products in supermarkets nationwide engaged Goldstar to prepare the company for a future sale. The company is about a year away from reaching the financial targets at which it wants to sell. Goldstar conducted extensive due diligence, assembled an online data room for all the information, created the company’s first comprehensive financial projection model, wrote a management presentation and coached the founders on how to position the company to buyers.

When the company commences its sale process, Goldstar’s work will allow the transaction to be quicker and less demanding on management. Management will be able to focus on achieving operating results during this critical time and not on preparing for a transaction. Since Goldstar updates the online data room and financial projection model quarterly, they will be ready for potential buyers.

Spencer’s and Spirit Halloween – Company Sale

The majority owner of Spencer’s, a 600 store mall-based retailer of novelty items and apparel, and Spirit Halloween, the nation’s largest seasonal Halloween retailer, wanted to sell the businesses. At the time, Spencer’s, a mature brand and retail concept, was emerging from a financial and marketing restructuring while Spirit was becoming larger and more profitable. The companies had to be sold together and we crafted a strategy and story to best position the firms to potential buyers.

Given the unique combination of businesses and their growth outlooks, we conducted a broad buyer search, approaching over 100 financial and strategic parties. After receiving several offers, we led due diligence and management presentations with potential buyers. We successfully sold the businesses to private equity firm ACON Investments.