Wed 19th Jun 2024 - Exclusive: Megan’s appoints advisors as it explores funding options Exclusive – Megan’s appoints advisors as it explores funding options: Megan's, the all-day, neighbourhood restaurant concept, has appointed advisors as it explores its further funding options, which could include a sale of the 20-strong business, Propel has learned. Megan’s, which is privately-owned and was founded in 2002, has appointed sector specialist M&A advisor, Tamweel, to evaluate strategic options as it looks to continue its rollout across Greater London, large cities and towns nationwide. It is thought that private equity and strategic trade players will be attracted to Megan’s, which has seen significant growth over the past three years, including the opening of ten new sites. The company, which is chaired by Rod McKie, the ex-chief executive of Welcome Break and Sticks 'n' Sushi, will open its next site later this summer in Weybridge. Megan’s said this pointed to a run rate restaurant Ebitda of £7.7m and site margins in excess of 20%. Propel understands that in addition to Weybridge, Megan’s is believed to have either signed on or is in advanced discussions on sites in Farnham, Crouch End, Blackheath, Beaconsfield and Oxford. Research carried out by the business has suggested it could operate 170 sites across the country, with grab-and-go and transport hub formats yet to be explored. McKie told Propel: "Now that we've reached a key milestone of more than 20 sites, it's an appropriate time in our journey to be considering our strategic options. In recent years, we have demonstrated that Megan's is able to successfully operate from a variety of locations, such as prime London sites in Battersea Power Station and Kensington, London suburbs such as Surbiton and Kingston to smaller cities and towns such as St Albans, Marlow and Welwyn Garden City. This highlights what we've always believed – that Megan’s has huge consumer appeal and growth potential. With market conditions improving, now is the right time for us to explore whether we go through the next chapter alongside a strategic or financial partner, or whether we continue to grow independently.” Ali Aneizi, founder of Tamweel, added: “Megan’s is a standout, high growth, next generation hospitality brand. Being a truly all day, all evening trader combined with its industry leading conversion gives it real scarcity value. While the deal climate remains challenging, for the right format, with the right KPIs, there continues to be interest from discerning buyers and investors.” Last month, Megan’s, which recently opened in Twickenham, south west London, reported revenue increased to a record £29.9m for the year ending 31 March 2024 compared with £26.5m the previous year. Company Ebitda was up to £4.8m from £2.7m, "which together reflects the continued success and growth of the business". Megan's stated: "A significant highlight of the fiscal year was the performance in the second half, where the company realised 20% Ebitda margin at the company level. This is largely attributed to the strategic leadership of Bridget Lambert, operations director, and her dedicated team. Their efforts have driven sustainable operational efficiencies and enhanced the overall guest experience, building on a strong foundation poised for further growth.” Megan’s features in the Propel Turnover & Profits Blue Book, the latest edition of which was sent to Premium Club members on Friday (14 June) and features 926 companies. Megan’s turnover of £29.9m is the 313th highest in the database. The Blue Book ranks companies by turnover, profit and profit conversion, listing directors’ earnings for the past five years. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.