Global Mergers & Acquisitions of Hospitality Industry
The global race for scale and distribution strength among hotel brand companies continues to charge forward. Like other economic sectors, two primary growth strategies have emerged within the hotel brand sector: growth by brand acquisition and growth by organic development efforts.
Restaurant mergers and acquisitions are having an influential impact on the global foodservice industry. Big companies are getting bigger and consolidating chains across categories, cuisines, and technologies. And regardless of the future economic climate, there will be an opportunity in the hospitality sector. If there’s a liquidity crisis, M&A opportunities will come through consolidation and distressed assets investment. If the economy is booming, emerging brands and markets will reveal new growth acquisition targets and look to create footholds in new geographies / across-the-borders trade
While we expect M&A activity to continue to pick up over the next five years, there’s going to be a significant change in strategies. There’s plenty of capital to put behind food service companies, and some concepts that are not even on the platter right now will jump to very large valuations in the next coming years.
Those with the technological infrastructure would be the ones to takeover the industry in the crisis. For the big companies, the M&A would be a significant move but what about the small private companies… is M&A activity too advanced for them? Do they need to sit aside and leave it to the big players?
Not at all! And they can apply the same principles to private deals.
The small private companies M&A would be the best organic M&A. Any restaurant or group of restaurants that are performing well should be interested in growing. But growth doesn’t always mean building new units. And that’s what we do. That is where our interest in M&A arises.
What do we do?
Our Hospitality sector is well verged with the today’s economics of this industry and especially the foodservice business. We have been acquiring more than merging with the foodservice industry / small-size restaurants and merging in with the hotels for the contractual management.
Are you there looking for principal mergers or selling off your business?
Connect with us, feel free to write to us about your business and the deals that you are looking for.