Quick Service Restaurant (QSR) / Fine Dining - Valuation & Deal Multiples- Sample Report
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Transcript of Quick Service Restaurant (QSR) / Fine Dining - Valuation & Deal Multiples- Sample Report
Reevolv Advisory Services
Private Limited
QSR & Fine Dining - Deal Multiples (Select Transactions)
For any queries or detailed information
contact us on +91 – 22 – 2436 3161 / +91 – 22 – 6002 2001 or
email at [email protected]
January 2014
QSR & Fine Dining – Deal Multiples (Select Transactions)
2
Table of Contents
Particulars Page Nos.
1. Deal Multiples Summary 3
2. Player Profiles and Deal Multiples
2.1. Ammi’s Biryani 7
2.2. Bakers Circle 11
2.3. Devyani 19
2.4. Faaso’s 31
2.5. Goli Vada 36
2.6. JSM 43
2.7. Mast Kalandar 53
2.8. Olive Bar 61
2.9. Pind Balluchi 68
2.10. Sagar Ratna 73
3. Annexure 78
QSR & Fine Dining – Deal Multiples (Select Transactions)
3
1. Deal Multiples Summary
Sr. No. QSR Name of
Investor/s Date
Amount Invested (Rs. Mn)
Year Pre-
Money (Rs. Mn)
EV (Rs. Mn)
Revenue (Rs. Mn)
EBITDA (Rs. Mn)
PAT (Rs. Mn)
EV/ Sales (x)
EV/ EBITDA
(x) PE (x)
1 Ammi's Biryani
SAIF Partners
July 19, 2012
FY 2012
FY 2013
August 08, 2012
FY 2012
FY 2013
July 17, 2013
FY 2013
November 19, 2013
FY 2013
2 Baker's Circle **
GEM India Fund
June 05, 2012
FY 2012
FY 2013
February 18, 2013
FY 2012
FY 2013
Hank Uberoi's
Fund
June 05, 2012
FY 2012
FY 2013
February 18, 2013
FY 2012
FY 2013
Yukti Securities
February 18, 2013
FY 2012
FY 2013
3 Devyani ICICI
Ventures May 13, 2011
FY 2011
FY 2012
** - The cumulative stake refers to the total stake held by the shareholder considering all the earlier investments (2006 onwards)
QSR & Fine Dining – Deal Multiples (Select Transactions)
4
Sr. No. QSR Name of
Investor/s Date
Amount Invested (Rs. Mn)
Year Pre-
Money (Rs. Mn)
EV (Rs. Mn)
Revenue (Rs. Mn)
EBITDA (Rs. Mn)
PAT (Rs. Mn)
EV/ Sales (x)
EV/ EBITDA
(x) PE (x)
4 Faaso's Sequoia Capital
October 24, 2011
FY2011
FY2012
November 06, 2012
FY2012
FY2013
February 08, 2013
FY2012
FY2013
5 Goli Vada Ventureast
August 03, 2011
FY2011
FY2012
May 04, 2012
FY2012
FY2013
6 JSM Corp Premji
Investment December 21, 2012
FY2012
FY2013
7 Mast Kalandar
Salarpuria Group
August 31, 2006
FY2006
FY2007
October 06, 2010
FY2010
FY2011
Footprint Ventures
July 11, 2008
FY 2008
FY 2009
October 06, 2010
FY 2010
FY 2011
February 10, 2011
FY 2010
FY 2011
September 30, 2011
FY 2011
FY 2012
June 20, 2012
FY 2012
FY 2013
February 04, 2013
FY 2012
FY 2013
September 28, 2013
FY 2012
FY 2013
# - Excluding amount invested in secondary stake buyout
QSR & Fine Dining – Deal Multiples (Select Transactions)
5
Sr. No.
QSR Name of
Investor/s Date
Amount Invested (Rs. Mn)
Year Pre-
Money (Rs. Mn)
EV (Rs. Mn)
Revenue (Rs. Mn)
EBITDA (Rs. Mn)
PAT (Rs. Mn)
EV/ Sales (x)
EV/ EBITDA
(x) PE (x)
7
Mast Kalandar
Helion Ventures Partner
October 06, 2010
FY 2010
FY 2011
March 18, 2011
FY 2010
FY 2011
September 30, 2011
FY 2011
FY 2012
June 20, 2012
FY 2012
FY 2013
February 04, 2013
FY 2012
FY 2013
September 28, 2013
FY 2012
FY 2013
8 Olive Bar
On October 17, 2012, Aditya Birla Private Equity has invested Rs. xxx/- in xx% Compulsory Convertible Preference Shares in accordance with the terms of the Share Subscription and
Shareholders Agreement
The Share Purchase Consideration of Rs. xxx/- paid/payable by the Aditya Birla to the Promoter and Existing Shareholders under the Share Purchase Agreement
xxx% Compulsory Convertible Preference Shares at a face value of Rs.xxx each that will be convertible in March 2014
The post money valuation of the Company would be based on a price-to-earnings multiple of xxx on the Reported PAT of the Company for the financial year 2014
Illustration:
FY14 PAT (P) Rs xxxCrores
PE xxx
Post-money Equity value Rs xxx Crores
QSR & Fine Dining – Deal Multiples (Select Transactions)
6
Sr. No.
QSR Name of
Investor/s Date
Amount Invested (Rs. Mn)
Year Pre-
Money (Rs. Mn)
EV (Rs. Mn)
Revenue (Rs. Mn)
EBITDA (Rs. Mn)
PAT (Rs. Mn)
EV/ Sales (x)
EV/ EBITDA
(x) PE (x)
9 Pind Balluchi
Everstone Capital
January 12, 2012
FY 2011
FY 2012
February 28, 2013
FY 2012
FY 2013
September 23, 2013
FY 2012
FY 2013
10 Sagar Ratna
India Equity Partners
June 16, 2011
FY 2012
# - Excluding amount invested in secondary stake buyout
QSR & Fine Dining – Deal Multiples (Select Transactions)
7
2. Player Profiles and Deal Multiples
2.1 XXXX
2.1.1 Overview
2.1.2 Geographic Presence
Northern Region
No. of Outlets
Main Cities
Eastern Region
No. of Outlets
Main Cities
Western Region
No. of Outlets
Main Cities
Southern Region
No. of Outlets
Main Cities
Source : Company Website and Reevolv Research
Description
Company Name
Founder
Year of Inception/
Incorporation
Inception -
Incorporation –
Brand
Name of Investor/s
Business Format
No. of Outlets
Cuisines
Average Meal Price
Future Plans
Source : Company Website and Reevolv Research
QSR & Fine Dining – Deal Multiples (Select Transactions)
8
2.1.3 Shareholding Pattern as on AGM September 27, 2013
Equity Shares Preference Shares *
Number of
Shares Paid up Percentage
Number of
Shares Paid up Percentage
Director/
Relatives of Director
Bodies Corporate
Total
Source : Company Filings
2.1.4 Financials
Profit & Loss Account for the year ended 31st March (Rs. Mn)
FY2009 FY2010 FY2011 FY2012 FY2013
Revenue from Operation
Other Income
Total Revenues
Cost of Materials Consumed
Rent, Rates and Taxes
Administrative and General Expenses
Employee Expenses
Selling and Distribution Expenses
Other Expenses
Total Expenditure
EBITDA
Depreciation
EBIT
Interest
Profit before Prior Period Items and Tax
PBT
PAT
QSR & Fine Dining – Deal Multiples (Select Transactions)
9
Balance Sheet as at 31st March (Rs. Mn)
FY2009 FY2010 FY2011 FY2012 FY2013
Share Capital
Share Application Money
Reserves & Surplus
Shareholders’ Funds
Secured Loan
Unsecured Loan
Loan Funds
Deferred Tax Liability
Total Liabilities
Gross Block
Net Block
Capital work in progress
Investments
Inventories
Sundry Debtors
Other Current Assets
Total Current Assets & Advances
Current Liabilities
Provisions
Total Current Liabilities & Provisions
Net Working Capital excl. Cash & Bank
Cash & Bank
Net Working Capital incl. Cash & Bank
Total Assets
Source: Company Filings, Totals may not tally due to rounding off errors
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10
Key Ratios FY2009 FY2010 FY2011 FY2012 FY2013
Expenditure Ratios
Cost of material Consumed as a % of Total Revenues
Rent, Rates and Taxes as a % of Total Revenues
Administrative & Other Expenses as a % of Total Revenues
Employee Expenses as a % of Total Revenues
Selling and Distribution Expenses as a % of Total Revenues
Profitability Ratios
EBITDA %
EBIT%
PBT %
PAT %
Return Ratios
ROCE %
ROE %
Financial Ratios
Total Debt / Net Worth
Secured Debt / Net Worth
Total Debt / EBITDA
Turnover Ratios
Working Capital Turnover Ratio
Net Fixed Assets Turnover Ratio
Inventory Days
Debtors Days
DuPont Analysis
EBIT / Total Income
PAT / EBIT
PAT / Total Income
Total Assets / Net Worth
Total Income / Total Assets
Source: Company Filings and Reevolv Research
QSR & Fine Dining – Deal Multiples (Select Transactions)
11
2.1.5 Valuation
Month & Year
Investor
Investor Company Name
Instrument 1
Instrument 2
Amount invested – Instrument 1 (Rs. Mn)
Amount invested – Instrument 2 (Rs. Mn)
Total Amount invested (Rs. Mn)
Instrument 1 – Equivalent stake (%)
Instrument 2 – Equivalent stake (%)
Total equivalent stake (%)
Primary stake %
Secondary stake %
Cumulative stake %
Source : Company Filings and Reevolv Research
Month & Year
(Rs. Mn)
Pre-money
Debt
Cash and cash equivalents
Net Debt
EV
Post-money
Revenues
EBITDA
PAT
ROCE %
ROE %
EV/ Sales (x)
EV/EBITDA (x)
PE (x)
Source : Company Filings and Reevolv Research
Note :
QSR & Fine Dining – Deal Multiples (Select Transactions)
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3. Annexure
3.1 Ratios
Key Ratios
Cost of Material Consumed % Cost of Material Consumed
Total Revenues X 100
Employee Expenses % Employee Expenses
Total Revenues X 100
Selling & Distribution Expenses % Selling & Distribution Expenses
Total Revenues X 100
Administrative Expenses % Administrative Expenses
Total Revenues X 100
EBITDA % EBITDA
Total Revenues X 100
EBIT % EBIT
Total Revenues X 100
PBT % PBT
Total Revenues X 100
PAT % PAT
Total Revenues X 100
ROCE % EBIT
Capital Employed X 100
ROE % PAT
Net Worth X 100
Capital Employed Total of Asset / Liabilities
(Liabilities = Shareholders funds + Loan Funds + Deferred Tax + Minority Interest)
Working Capital Turnover Ratio Total Revenues
Net Current Assets excl Cash Bank
Net Fixed Assets Turnover Ratio
Total Revenues
(Net Fixed Assets excl Capital Work in Progress)
Inventory Days Inventory
(Cost of Material Consumed) X 365
Debtors Days Debtors
Total Revenues X 365
QSR & Fine Dining – Deal Multiples (Select Transactions)
13
3.2 Abbreviations
Description
CCPS Compulsory Convertible Preference Shares
EV Enterprise Value
CCD Compulsory Convertible Debentures
EBITDA Earnings before interest, tax, depreciation and
amortisation
EBIT Earnings before interest and tax
PBT Profit before tax
PAT Profit after tax
ROCE Return on capital employed
ROE Return on equity
P/E Price to earnings
NA Not Available
NM Not Meaningful
QSR & Fine Dining – Deal Multiples (Select Transactions)
14
About Reevolv
Reevolv is a boutique consulting and investment banking company offering a "One Stop Shop" in the
areas of business strategy, financial advisory and operations consulting to corporates and private equity
funds.
We service our clients in their constant re-evolution process through our in-depth industry research,
domain understanding, our timely and superior execution capabilities and strong network to provide
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With a host of implementation focused services spanning across functions, we ensure that our clients
reach the desired goals and objectives in most efficient manner. We achieve sustainability of our
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Strategic, Financial and Operational needs of the clients on a regular basis to ensure adaptability and
flexibility to suit the market and industry dynamics.
Founded in 2008, Reevolv is a team of CAs, MBAs and Engineers with functional and industry expertise
and diverse background of investment banking and management consulting.
Disclaimer
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Contact Details
For any queries or detailed information
contact us on +91 – 22 – 2436 3161 /+91 22 – 6002 2001 or email at [email protected]
Address: No. B/002,Vision Court Staney Fernandes Wadi CHS Ltd., Plot no. 746, MTNL Exchange Lane,
Dadar (West), Mumbai 400 028
You can also email the research analyst at
Shilpa Bhattar
Kaustubh Kulkarni