The Up-C Partnership IPO Structure

Restaurant public offerings have been a hot industry topic since 2014, a year that saw about a half-dozen restaurant IPOs. As consumer preferences evolve and new restaurant concepts take off, public offerings may be on the menu for many emerging industry players.

But IPOs carry unique challenges and risks, many of which our own Gary Shamis and Dustin Minton discussed in an article for Fast Casual and our Selections newsletter last June. Regulation, increased exposure to economic fluctuations and shareholder demands are important factors for restaurants to consider when going public. But perhaps a more immediate concern, and one that can make or break a decision to go public, is the tax implications of an offering.

In BDO’s latest PErspective private equity newsletter, Jeffrey Bilsky and Avi Goodman explore the benefits of the Up-C partnership, a potential IPO structure that could minimize the tax burden for restaurants considering an offering. Click through to read the full article.