Situation

The Company was evaluating strategic alternatives amid a challenging environment for franchisees, shaped by brand-level headwinds and shifting consumer dynamics. Adding complexity, Yum! Brands was pursuing a sale of the Pizza Hut brand while ADT was in market. 

Despite this backdrop, ADT continued to outperform the broader system, supported by the Company’s favorable geographic footprint and experienced management team.

Engagement

G2 Capital Advisors (“G2”) served as the Company’s exclusive sell-side advisor, with a mandate to achieve the best outcome for the Company and its shareholders. Leveraging deep experience across the restaurant and franchise sectors, including specific knowledge of the Pizza Hut system, G2 worked with management to articulate the Company’s differentiated performance and value against a difficult brand backdrop. G2 then ran a broad, competitive process, engaging a wide range of strategic buyers, financial sponsors and prospective capital providers. Throughout, G2 navigated the added uncertainty of the franchisor’s parallel sale.

Outcome

Ultimately, the Company’s founder and CEO emerged from the competitive process as the best buyer for the business, meeting the varied demands of all stakeholders on a very compressed timeline.

The result demonstrated the importance of looking beyond broader brand performance to see the value of a well-run business with a clear vision for the future. By combining sector knowledge and transaction experience with a solutions-oriented approach, G2 helped the Company navigate a tough market and execute a value-maximizing transaction.

“This was a complex assignment with a lot of moving pieces. Our focus was running a disciplined process, keeping everyone at the table and working through each alternative until we reached the right deal for ADT. We are proud to have delivered a strong outcome for ADT’s shareholders.” — Heidi Piché, Managing Director, G2 Capital Advisors