Corporate Growth
The service sector continues to be one of the fastest growing segments of our economy. Sohlen Franchise Advisors recognizes that franchised and multi-unit retail companies will continue to dominate the service sector because these companies have unique opportunities to:
- Utilize economies of scale to gain competitive advantages in purchasing, marketing, advertising, real estate and financing.
- Insure quality service at point of sale.
- Be an integral part of and know their local communities.
- Update and freshen the business concept and delivery of their services.
A key element of success of franchised and multi-unit retail companies is the "entrepreneurial equity" at point of sale which serves as a creative and motivating force. In a franchising situation, service quality is monitored both by the franchisor striving to build value of the brand and grow the scale and scope of its franchise system, as well as by the franchisee with invested capital at point of sale.
The access to capital conundrum
Despite these compelling dynamics, many successful franchise and multi-unit businesses are treated like start-ups in the capital marketplace. A relatively small franchise or multi-unit retail business frequently has hundreds of years of unit level operating experience. Most funding sources do not understand how to factor this operating experience into their funding decisions. To further complicate the process:
- Few funding sources understand how to analyze cash flow driven businesses.
- Most funding sources are concerned about the special purpose nature of the assets of franchise and multi-unit retail businesses.
- Equity and growth capital sources assume higher returns can be earned in the higher technology end of the economy.
Lack of funds for expansion, remodeling, refinancing and acquisitions dilutes the value building process. Growth is slowed. Profit potential is limited. New sites are lost to competitors. Market share is eroded. Your business is less able to respond to competitor initiatives in advertising and promotions. The value of your company is minimized.
Sohlen Franchise Advisors would like to be your partner in financing your business plans into reality. Our capital raising efforts are designed to meet your specific needs and objectives. We are not anchored to any one source of capital, product or approach. Your success is our success; our goal is a long term relationship.
We have experience with all aspects of the capital formation process and offer a unique blend of financial skills and industry expertise necessary to evaluate your business, source cash flow friendly capital, structure the transaction and get it closed.
Sohlen Franchise Advisors know the challenges you face and understand the dynamics of franchising. We are in the financial and capital markets daily. We can create value for you.
- Financial Restructure Restructure and renegotiate your Company's obligations.
- Financial Advisory Structure and source mezzanine and debt capital to grow, refinance and/or re-capitalize your Company.
- Strategic Advisory Provide, Mergers, Acquisitions and Divestitures advice.