MCA Financial Group was recently retained to manage the cash flow and financial restructuring for a restaurant franchise with over 30 locations across four states, 800 employees, and $60 million in annual revenue. The engagement is centered on distressed mergers & acquisitions, as MCA helps the client navigate a complex restructuring and sale process.
The franchisee faced significant challenges, including underperforming stores and inaccurate financial data, which clouded management’s understanding of the business’s true financial health. MCA was brought in to address these issues, successfully cleaning up financial reporting and providing accurate, store-level data. This transparency allowed the client to grasp its actual financial standing and aided in developing a valuation model and a strategic plan to close non-performing locations while positioning the remaining stores for a potential sale.
A key element of the engagement involved helping the client accept their financial reality. MCA collaborated with the client’s legal counsel to ensure a common understanding was achieved without damaging critical relationships. MCA has also worked closely with secured lenders, franchisors, landlords, and legal teams throughout the process, ensuring a smooth, coordinated effort.
The client’s key objective is a controlled exit strategy that minimizes personal liability. MCA’s financial reporting expertise, cash flow management skills, and ability to guide the client through a complicated decision-making process have been pivotal in achieving these objectives, ensuring a path toward successful resolution.