M&A · Industrials · Patent Owners & Lessors
Freedom VCM, Inc. to acquire Franchise Group, Inc.
Announced May 11, 2023 · Closed Aug 21, 2023
Deal value—
Premium—To unaffected price
EV / Adj. EBITDA—
ConsiderationAll cash
Transaction
- Acquirer
- Freedom VCM, Inc.
- Target
- Franchise Group, Inc.
- Buyer type
- Strategic
- Offer price per share
- —
- Enterprise value
- —
- Status
- Closed Aug 21, 2023
Deal protections
- Break fee (target pays)
- $20.7M
- Reverse fee (buyer pays)
- $55.0M
- Go-shop
- Go-shop
- Financing
- Committed · JPMorgan, Jefferies
Advisors
- To the acquirer
- Not disclosed
- To the target
- Jefferies, B. Riley
Sector context · Industrials
- Comparable deals
- 77 in the prior 24 months
- Premium
- Sector median 49.0%
- EV / Adj. EBITDA
- Sector median 12.1x
- Break fee
- Sector median 2.8%
Timeline
- AnnouncedMay 11, 2023
- Proxy filedJun 8, 2023
- Definitive proxyJul 14, 2023
- Shareholder voteAug 17, 2023
- ClosedAug 21, 2023
Valuation · fairness opinions
Trading comparables$10.75$22.00
Trading comparables$10.25$22.50
Precedent transactions$10.75$22.00
Precedent transactions$17.00$31.75
Discounted cash flow$26.25$38.50
Implied value per Franchise Group, Inc. share by analysis, from Jefferies.