Why Private Equity Firms Need Marketing Vitals

private equityRFDC 2017 is going to be a fantastic time this year. It’s a fascinating time to be a part of the business and finance side of the restaurant industry. Restaurant companies are currently being bought and sold at a much higher rate than we’ve seen in the past. Private equity firms have gotten in on the action, and we’re seeing near constant buying and selling.

This is potentially a great thing, and RFDC is a great opportunity to network and learn more about the innovation and changes going on in the restaurant industry.

But as with any industry, the increase in buying, selling, and swapping means that buyers have to be even more careful about their acquisitions. The issue is that many PE firms are buying restaurant companies, but they need better data and insights into those companies—before they buy and when they begin to produce a strategy for running them effectively.

For one thing, the valuation of the restaurant company being bought has to be accurate. PE firms also need to have a deep understanding of how the restaurant company has been doing, what their long-term value is, and where they’re currently headed. There’s no better way to understand all of that than by using Marketing Vitals software.

Our software is developed specifically for restaurants, and it immediately begins learning about the restaurant company and gathering data that we use to create the insights PE firms need. It takes data from sources you might expect—the number of customers and revenue—to those that you might not have thought about—the effects of weather patterns or competitors on business, or the effectiveness of marketing campaigns.

Data streams in from all corners of the business, and it’s then analyzed and presented to our clients in a clear, concise style that allows them to confidently make decisions about moving forward with acquiring a restaurant company. Our clients aren’t handed stacks of reports to sort through, rather, they’re given actionable data presented in clear charts, graphs, and paragraphs.

And once the company has been acquired, it’s always necessary to chart the course for success in the future. That’s where our predictive analytics really shine. By using the massive amounts of data generated by a restaurant company over time, we can help predict what consequences different decisions will have on the company.

Our software can even go so far as to suggest the right amount to raise prices without harming customer loyalty. So a restaurant company that may be in need of some changes won’t end up losing customers as a result of implementing new prices or a new direction.

This is a new era in the restaurant industry, and the power of data analytics is making it easier for PE firms to understand exactly how valuable a restaurant company is, and what they’ll need to do in the future to increase that value.

If you’re interested in learning more about our software, contact us today. Or come find us at RFDC and we’ll explain exactly why our software is right for you.

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