Financial Review Franchise Group Inc. slide image

Financial Review Franchise Group Inc.

• . Disciplined, value-based acquisition strategy targeting superior cash flow and leading unit economics Acquisition strategy targets franchised or franchisable businesses that are highly cash flow generative and support attractive and growing dividends to shareholders • • • Superior unit level economics ensuring franchise "salability" and success Franchising increases scalability, operating margins and cash flow conversion of profits Low capital expenditure requirements Acquired businesses must have strong unit-economics and typically fit into one of three categories: • ● • Multi-unit franchise businesses that can be scaled Multi-unit businesses that are predominantly corporate-owned but can re-franchised and grown through franchising Multi-unit businesses that can be restructured to maximize value to FRG Established corporate platform enables FRG to deploy capital to acquire assets that may have few natural buyers but become more valuable as part of FRG: Financial discipline • • Shared services · Purchasing efficiencies Best practices FRANCHISE GROUP INC. 6
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