This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:26 p.m. on Apr. 30, 2026.
As Mom's Touch proceeds with selecting a sale manager, several parties are said to have expressed interest in participating. As a result, market attention is focused on whether Mom's Touch can be awarded a higher EV/EBITDA multiple than KFC Korea or the Five Guys Korea entity, both of which recently completed sales, based on its potential to expand into overseas markets.
According to the investment banking (IB) industry on the 30th, KL & Partners, the private equity fund (PEF) manager that is the largest shareholder of Mom's Touch, received requests for proposal (RFP) submissions for selecting a sale manager until 1 p.m. that day. Multiple major domestic and foreign investment banks and accounting firms are said to have submitted proposals. KL & Partners plans to shortlist candidates early next month and reach out to them individually.
In recent restaurant franchise transactions, EV/EBITDA multiples of around 10 times have been the norm. In the case of KFC Korea, about 10 times was applied, and for FG Korea, the Korean operator of Five Guys, a sale price in the 7–10 times range is being discussed. However, for FG Korea, Hanwha Galleria and preferred bidder H&Q Korea are reportedly revisiting the price. There is room for price adjustments.
In the U.S. market, restaurant franchise valuation multiples often rise to 13–15 times, but they are assessed lower in Korea.
But the largest shareholder of Mom's Touch wants a multiple of at least 10 times. Since Mom's Touch once pushed a sale and then pulled back, analysts say the acquisition appeal needs to be clearer this time. Mom's Touch's EBITDA last year was about 102 billion won, and a simple application of a 10 times multiple would put the enterprise value in the low 1 trillion won range.
There are positives. Mom's Touch secures stable cash flow through a nationwide franchisee base. At the same time, as a homegrown brand, it is seen as having favorable prospects because it remains open to overseas expansion and brand extensions. In fact, Mom's Touch focused on expanding operations in the Japanese market through last year. After opening its first location in Shibuya, Tokyo, in 2024, Mom's Touch increased the number to five, one of which is a franchise. It aims to open 50 stores by the second half of this year. Recently, the business has expanded to Laos, following Thailand and Mongolia.
Another distinction from other global brands is the ability to adjust business strategy without headquarters' policy constraints. While KFC Korea and Five Guys use overseas licenses, Mom's Touch enjoys greater operational freedom as a franchisor. A representative example is the launch of its second brand, Mom's Pizza, using the existing platform.
Because it operates mainly as a franchise business, capital expenditure on fixed assets is limited, which increases actual cash availability—another appeal. With less capital expenditure (CAPEX) reflected in depreciation, some analysts say the enterprise value could be priced higher than what a simple multiple would indicate.
However, among domestic investors recently, it is viewed negatively that some franchise headquarters pursued profit maximization and clashed with franchisees, and that this could lead to legal restrictions. The pool of potential buyers is seen as somewhat limited.
An industry official said, "Mom's Touch has stability and is in a growth phase, so there is room to achieve a good valuation," but added, "A somewhat skeptical view of the franchise sector is a negative factor."