Background

With the COVID-19 pandemic leading to a widespread shutdown of the hospitality industry, a leading UK-based chain of Asian-inspired fast-food stores was forced to close the doors to all of its trading sites. With most of its sites in city centres and transport hubs, where the return to commuting and office working is expected to be gradual, the company was forecasting continued financial challenges. Therefore, the business was looking at a range of potential strategic options, including a Company Voluntary Arrangement (CVA).

Action

FRP’s Corporate Finance team was appointed to perform an independent valuation that could be used by the company and its advisers to support their strategic analysis, including a potential CVA application. We were able to engage swiftly and efficiently produce a full valuation report to a tight deadline, despite the challenges of valuing a business in a very uncertain market, drawing on our first-hand experience of sector M&A during the pandemic.

Outcome

Our valuation report was produced in a short timeframe. It was then used by the company and its business advisers to support the successful application for a CVA, helping to stabilise the company and offer a solution to recovery following the impacts of the pandemic.