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Press releases > Generational Equity Advises The RM Restaurant Group in its Sale to Xperience Restaurant Group

Generational Equity Advises The RM Restaurant Group in its Sale to Xperience Restaurant Group

By Generational Equity

Mar 7, 2023, 08:00 et
The RM Restaurant Group

Generational Equity, a leading mergers and acquisitions advisor for privately held businesses, is pleased to announce the sale of its client The RM Restaurant Group to Xperience Restaurant Group, a portfolio company of Z Capital Partners LLC, the private equity fund management arm of Z Capital Group LLC (“ZCG”). The transaction closed February 27, 2023.

The RM Restaurant Group (dba Rio Mambo Tex Mex y Mas and THE RIM scratch craft) is a collection of six restaurants, across two restaurant concepts, in Fort Worth, Texas and surrounding areas. Rio Mambo Tex Mex y Mas, with four separate locations, provides an ingredient-driven menu in a contemporary setting. THE RIM scratch craft serves ‘food with soul, and a side of vibe’ and features an eclectic interior and great music.

The Company offers excellent service to clients with a high level of quality ingredients, which drives word-of-mouth referrals and repeat business from customers. Historically, the Company received a large portion of its sales through repeat business, which is responsible for generating approximately 80% of total revenue.

The primary means for expanding its customer base are the Company’s community engagement, advertising and marketing initiatives, outstanding reputation, and positive word-of-mouth referrals from existing clients. Additionally, RM also maintains two websites, www.riomambo.com  and www.therimrestaurant.com.

Xperience Restaurant Group (XRG) is a leading casual and fine dining operator having iconic brands that serve unique experiences, great food, and unparalleled beverage offerings. Through its bold leadership, innovation, and brand development, XRG has transformed the U.S. Mexican dining landscape with its origination of Taco Tuesday, tableside presentations, and pioneering cocktail program.

For over 65 years XRG’s brands have become synonymous with being the best-in-category with recent accolades including Best Mexican Restaurants, Best Taco Tuesday, and Best Happy Hours in various media outlets throughout the country. XRG currently operates 68 restaurants, including El Torito, El Torito Grill, Chevys Fresh Mex, SOL Mexican Cocina, Solita Tacos & Margaritas, Acapulco, Las Brisas, Sinigual, and Who Song & Larry’s.

ZCG is a leading, privately held merchant bank comprised of private markets asset management, business consulting services, technology development and solutions. For almost 30 years, ZCG Principals have invested approximately $26 billion and have industry-leading track records in private equity and credit. In Asset Management, ZCG has approximately $6.5B of AUM and its investors are some of the largest and most sophisticated global institutional investors, including pension funds, endowments, foundations, sovereign wealth funds, central banks, and insurance companies. ZCG has a global team comprised of over 375 professionals.

"To find a group whose culture so closely aligned with ours, and who is passionate about expanding our concepts while keeping all of our leadership intact is nothing short of a miracle. My family feels truly blessed,” said Brent Johnson, Founder and President of The RM Restaurant Group.

"With its rich heritage, authentic flavors, and loyal customer base, this acquisition aligns perfectly with our growth strategy and commitment to providing our guests with the best dining experiences,” said Randy Sharpe, CEO of XRG. “We are excited to welcome the talented team behind this group and look forward to building on its success in the years to come."

Generational Equity Executive Managing Director of M&A Central Region, Michael Goss, and his team, led by Vice President, M&A, Jacob Mangalath, with the support of Vice President, M&A, Lance Thomasson, successfully closed the deal. Senior Managing Director Doug Morrow established the original relationship with The RM Restaurant Group.

"Brent Johnson built these brands on one foundational theme, “Relationships Matter”. All of the restaurants exemplify this perfectly and have become staples in the communities they serve,” said Mangalath.

Mangalath added, “We are very blessed to have found the perfect buyer who shares these same values. Backed by ZCG, Xperience Restaurant Group has the experience, talent, and resources to take Rio Mambo and the RIM across the country.” 

About Generational Equity

Generational EquityGenerational Capital Markets (member FINRA/SIPC), Generational Wealth Advisors, Generational Consulting Group, and DealForce are part of the Generational Group, which is headquartered in Dallas and is one of the leading M&A advisory firms in North America.

With more than 350 professionals located throughout 16 offices in North America, the companies help business owners release the wealth of their business by providing growth consulting, merger, acquisition, and wealth management services. Their six-step approach features strategic and tactical growth consulting, exit planning education, business valuation, value enhancement strategies, M&A transactional services, and wealth management.

The M&A Advisor named the company Investment Banking Firm of the Year three years in a row, Valuation Firm of the Year in 2020, and North American Investment Bank of the Year in 2022 as well as Consulting Firm of the Year. The Global M&A Network named Generational USA Investment Bank of the Year in 2023. For more information visit https://www.genequityco.com/ or the Generational Equity press room.

I decided to attend the conference and hopefully receive some guidance on how to structure an exit plan of my business. Upon arriving at the conference, I was so impressed with the presentation given by Generational Equity that I set a future appointment that week to discuss the possibility of selling my business with their Senior Managing Director David Robinson.
JoAnn Ellis, Owner of Fondren 5 Star Kennels
I couldn’t have asked for a better team than Michael and Deborah. We couldn’t have done it without them.
Robert Evans, President and CEO of Mealtracker Dietary Software
Greetings Mike. Thank you for the captivating and compelling presentation you made at the Phoenix presentation last week. Over many years in business yours was the most informative and well-presented presentation, on any subject, that I have ever attended! Your energy and enthusiasm combined with your concise and captivating support of your positions with easily understood examples and data was compelling.
Pete L.
We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
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Robert Evans, President and CEO of Mealtracker Dietary Software
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JoAnn Ellis, Owner of Fondren 5 Star Kennels
After attending a conference with GE, I decided that the value they bring would be worth the expense and as soon as I started working with them, I realized that was the right decision. When we started to get LOIs, Fred Zweifel took the lead on the communication and supported negotiations throughout the process, which got tricky as we moved forward. I learned that it can be common for companies to make a great offer then work to erode that price with their discoveries, but Fred and the GE team kept that from happening.
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Eric Erlandson, Owner, Action Fastenings, Inc.
We knew it would be a difficult task to have someone really understand our business and our market, prior to researching a possible buyer, so it was imperative that we found someone of your caliber, with definite proven experience in this area.
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Bil MacLeslie, CEO, ipHouse
T.D., thank you so much! You are a great leader! I love how you are using your gifts and talents to better others. You are clearly a GREAT COACH! This 3 day session undoubtedly changed the future of our business, and very well may have been the sole catalyst to save my company, my health and my marriage! A genuine “thank you” from the bottom of my heart.
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I wanted to write you a quick letter to express our appreciation and our delight on the outcome of helping us through the process of our recent sale. We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
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Tom Currier, Former President & CEO, Rackmount Solutions
I wanted to take this opportunity to thank you for all that you have done for us. Not only did you take care of all the aspects of the sale but took extra care to make sure we knew what it looked like every step of the way. I will definitely recommend your company to anyone that is in a position to or looking to exit their business.
Shane and Johanna Kline, Owners of Vision Upfitters
Thank you again for all your guidance and support. Any company will achieve what they intend, if they have you on their team!
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
I need to say an immense thank you to Don Ho for his stellar work ethic, attention to detail, and tireless effort. Also thank you to the whole crew at GE! Without you, Don could not do such a phenomenal job. We were shooting for closing and funding before the end of 2020, due to the uncertainty of the political landscape and taxes. I am happy to report we closed last week and will be funding tomorrow.
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The most important contribution I think Ahmad made was with his personality and work ethic. He is sincere, efficient, and very hard working. He was available to me at all times, whether it was for specific detail of the negotiation or just to talk through the bigger picture. He listened, advised, and recommended, but never forced his idea or opinions. In the time we worked together, he became a valued colleague and also a friend.
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