Due diligence on restaurant companies should factor in industry-specific legal and operational risks.

Buyers acquire restaurant companies to access new brands, expand and diversify, or vertically integrate. Attractive target companies will have demonstrated an ability to weather pandemic-related closures and social-distancing limitations, as well as more recent inflationary pressures, supply chain disruptions, and a tight labor market. Determining whether a given company will meet both a buyer’s and seller’s objectives and enhance value in a sale requires an understanding of industry-specific legal and operational risks.