Monday, July 31, 2017

Burger Chain’s Stock Market Offering A $15 Million Bet To Fund National Expansion

Celebrity Chef Bobby Flay plans to offer Wall Street shares of his burger business up to the public. The move, announced July 17, 2017, is intended to give Flay a financial boost as those buying in drive up the stock of his fast-casual Bobby’s Burger Palace chain in hopes of an international expansion. According to CNBC, there are just 17 locations of the chain that competes with Shake Shack, Five Guys and Smashburger. Todd Katz, formerly Chief Financial Officer of Quest Integrity, says that the transformation into a publicly-traded company takes time but will often provide the capital needed to foot the bill of expansion – in Flay’s case, a major footprint growth. The CNBC report adds that Flay’s restaurant chain isn’t as recognizable as Shake Shake, which also went public on the stock market, but investors could jump on the chance to own shares of something associated with the Food Network star.

Todd Katz’s time with Quest Integrity, a pipeline inspection company, was capped in 2015 marked by the sale of the company to a publicly-traded company. Total proceeds of the sale amounted to $77 million by the end of 2015. Starting in 2008, Todd Katz took Quest Integrity from a start-up operation to a company boasting 285 employees and making worldwide revenue of $75 million in 2016. Companies as profitable as this are an enticing offer for those in the stock market. Potential investors, in exchange for their purchase of shares, help boost the bottom line of the company that’s gone public. According to the CNBC report, Flay hopes to bring in about $15 million to help cover the costs of the expansion.

Todd Katz, formerly of Quest Integrity, spent decades overseeing mergers and acquisitions at financial institutions across the country. While in Palo Alto and San Francisco, Katz managed a team of investment bankers and attorneys as the team looked into acquisitions, mergers, divestitures and spin-offs. While in Los Angeles, Katz assisted with new business origination, including new business presentations and complex financial modeling. As you can see, there are professionals like Todd Katz on the other end of businesses such as Flay’s looking out for prudent fiscal moves. While only time will tell if Flay will see his rather small chain of burger joints spread across the country, it’s a sure thing that investors will be keeping a close eye on the initial public offering.

Friday, June 16, 2017

Not All Bankruptcy Filings Are The Same, Economic Expert Explains

Not every bankruptcy filing is the same. While a headline heralding the “bankrupt” declaration is bad publicity on its face, readers who take the next minute to digest the first paragraph of the story soon realize that their favorite brand or store isn’t shutting its doors forever. According to Todd Katz, a professional in the business sector who spent decades leading divisions of companies and eventually attained the title of chief financial officer, companies don’t take the decision to file for bankruptcy lightly. As the former vice president of mergers and acquisitions for a New York City-based law firm, Katz oversaw crisis management during a communication company’s $18 billion bankruptcy restructuring. 

The key word there is “restructuring,” as not all bankruptcy filings are the same. In short, a Chapter 11 bankruptcy filing is a case were a company hopes to reorganize and get its financial matters in order. It’s permitted under U.S. law and any business, corporation or partnership can take this route after being unable to meet financial repayment obligations. After filing a petition in court, the company must declare assets, liabilities, income, expenditures, contracts, leases and more. As the process continues, courts will decide if whether the company’s proposed reorganization under U.S. bankruptcy code will be carried out. The plan for economic recovery that the insolvent company must present is often presented from the onset, but must be offered within 120 days of the filing.

In June 2017, California-based child clothing company Gymboree Corp. announced that it was making a Chapter 11 filing after revealing $1.36 billion in debt. According to the Washington Business Journal, the company owns approximately 1,300 stores across the U.S. and Canada. It hopes to “continue to deliver superior services to our customers,” company President and CEO Daniel Griesemer said in a news release cited in the report. “We expect to move through this process quickly and emerge as a stronger organization that is better positioned in today's evolving retail landscape, with the right size store footprint and greater financial flexibility to invest in Gymboree's long-term growth,” Griesemer continued.

According to Katz, Chapter 11 is an often-chosen route for companies that aren’t ready to throw in the towel via Chapter 7 bankruptcy filing – a liquidation of assets and end of operations.

Wednesday, May 3, 2017

Employers Looking To Hire Should Search For These Skill Sets, Attitudes Among Applicants

The roughly 98,000 jobs added across the U.S. in March 2017 represents the smallest gain in approximately one year, according to recently-released federal statistics. Reacting to the “Employment Situation Summary” data from the U.S. Bureau of Labor Statistics, some economists believe that winter weather and recent higher hiring numbers allow for the slump seen in March.

An S&P Global Ratings chief economist told The Washington Post that while March’s numbers were a disappointment, a rebound to recent gains is likely not too far off. To Todd Katz, who has spent decades as an authority in the financial sector, the ebb and flow of hiring is just part of the process. However, he also has some suggestions for both companies looking to add to their ranks in the coming months and job-seekers in the hunt for the perfect gig.

Per the April 2017 Washington Post article, March unemployment was down compared to February’s total – 4.5 percent to 4.7 percent, respectively. The report adds that roughly 56,000 of the total 98,000 jobs added came from the professional and business services sectors. The reason why winter weather affected employment totals is because retail and construction jobs, for example, are heavily tied to foot traffic and the ability to work.

So what should employers look for in the coming months as the U.S. economy continues its rebound from the Great Recession? According to Todd Katz, it’s easy to figure out who’s going to thrive in any environment if you’re looking for a few key traits.

The first consideration for employers should be enthusiasm. If your candidate is enthusiastic, that’s a sure-fire sign that this person will hit the ground running if hired. Given the massive shedding of jobs that has taken place in the U.S. over the past 10 years, a candidate who admits that they might be overqualified should show you that they want to perform the work you’ll be offering them – and not just working for a paycheck. Finally, consider how you’re coming across. This can be tricky for those who perform candidate interviews often, but how can you expect someone to be interested in working for you if you can’t get excited for your own employer?