Quick Service Restaurant (QSR) / Fine Dining - Valuation & Deal Multiples- Sample Report

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QSR & Fine Dining - Deal Multiples (Select Transactions)
Publisher Name: Reevolv Advisory Services Private Limited Number of Pages: 75
Typically, deal multiples are not available easily for analysis. Information is usually obtained through informal sources. To address these issues, we have calculated deal multiples based on company filings and our research. We hope you find this useful.
The report enlists the private equity transactions in QSR & Fine Dining industry for the players as mentioned below -
 Ammi’s Biryani  JSM (Hard Rock Café, California Pizza Kitchen, Shiro, etc.)
 Bakers Circle  Mast Kalandar
 Devyani (Pizza Hut, KFC, Costa Coffee etc.)  Olive Bar
 Faaso’s  Pind Balluchi
 Goli Vada  Sagar Ratna

The report contains the following details for each transaction:
- Player profile: Overview of the investee company, Geographic spread
- Shareholding Pattern: Instrument, Break up of instrument, Percentage holding
- Historical Financials: Profit & Loss Account, Balance Sheet, Key Ratios
- Valuations: Investor, Instruments used, Amount Invested, Percentage stake acquired
- Deal Multiples: EV/Sales, EV/EBITDA, P/E
The above report forms part of the Valuations and Deal Multiples segment of Reevolv Research. This report is a recent launch in this segment subsequent to the earlier published report on Healthcare Deal Multiples (Select Transactions) - Part I.
To order a copy of the report or extracts, please contact Kaustubh Kulkarni / Bhagyashree Mhatre.
Landline: +91 - 22- 243727346
Email: research@reevolv.in
We also do customized research. So in case there is any specific transaction (irrespective of the sector) you are looking for, please feel free to get in touch with us.

Regards,
Kaustubh Kulkarni

Reevolv Advisory Services Pvt. Ltd.
Address: Shop No 8, Shiv Shakti CHS Ltd,
Agar Bazar, SK Bole Road, Dadar West,
Mumbai- 400028
M: +91 - 98677 42818
L : +91 - 22 - 2437 2746
W :www.reevolv.in

Recent launch: Healthcare Deal Multiples (Select Transactions) – part I
Upcoming Reports from Reevolv: E-Commerce Deal Multiples (select transactions), Ladies Handbag Industry Report
Past Reports from Reevolv:
 Indian Salon Industry Report
 Indian Footwear Industry Report
 Indian Salon Hair and Skin products Report
 Indian Eyewear Retail Industry Report

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Quick Service Restaurant (QSR) / Fine Dining - Valuation & Deal Multiples- Sample Report

  1. 1. Reevolv Advisory Services Private Limited QSR & Fine Dining - Deal Multiples (Select Transactions) For any queries or detailed information contact us on +91 – 22 – 6002 2001 / 2436 3161 or email at research@reevolv.in January 2014
  2. 2. 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
  3. 3. 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)
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. QSR & Fine Dining – Deal Multiples (Select Transactions) 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
  11. 11. 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 : • •
  12. 12. QSR & Fine Dining – Deal Multiples (Select Transactions) 12 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
  13. 13. 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
  14. 14. 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 customized solutions to our clients. 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 initiatives by an all round involvement of the client resources. This approach of an integrated improvement helps build a strong foundation for the forward leap of our clients. Reevolv understands and acts upon the 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 This report is published for information only. Reevolv Advisory Services Private Limited or any of its affiliates, group companies, directors, employees, agents or representatives shall not be liable for any loss or damages whether direct or indirectthat may arise from or in connection with the use of the information in this document. This document is the sole property of Reevolv Advisory Services Private Limitedand prior permission is required for full or part reproduction.This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. Contact Details For any queries or detailed information contact us on +91 22 – 6002 2001 2436 3161 or email at research@reevolv.in 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 shilpa@reevolvindia.com, shilpa@reevolv.in

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