Orangewood Partners targets franchisees in fragmented markets ripe for scale
What makes a franchise business an attractive private equity investment? According to Orangewood Founder and Managing Partner Alan Goldfarb, the opportunity lies in backing high-performing franchisees in fragmented markets that are well positioned to scale with institutional capital.
In a profile of Orangewood’s investment strategy, Mergermarket explored the firm’s approach to sourcing and growing lower middle-market businesses.
Goldfarb discussed why Orangewood focuses on cash-flowing service businesses and how the firm’s research-driven investment process seeks to identify attractive sectors earlier in their development. He also outlined Orangewood’s operational approach to supporting organic growth, pursuing strategic acquisitions and building institutional platforms.
The article also highlights Orangewood’s experience investing in franchise businesses, including Pacific Bells, SERVPRO West Coast DRT and Motley 7 Brew, and how the firm partners with management teams as it seeks to create long-term value.