While some people in California might not be familiar with the food delivery services Waitr or Bite Squad, that could change in the years ahead since Waitr is purchasing Bite Squad. The deal means expansion to 500 cities in more than 20 states. Bite Squad will continue using the same system for now, so existing customers are unlikely to see any immediate changes.
In two years, Bite Squad has absorbed more than 40 companies. While neither Waitr nor Bite Squad has as much money as some other companies, both say their business models set them apart. Instead of using contract drivers, both make their delivery drivers employees. Bite Squad also offers its customers the opportunity to order liquor.
The CEO of Waitr says that one important concern for food delivery businesses is effectively integrating with a restaurant’s point of sale system. However, he says it is also important to have a proprietary POS system.
Waitr will reportedly pay $321.3 million for Bite Squad. Waitr will also take on a debt commitment with Luxor Capital of $41.1 million. The company’s stock increased by 5 percent after it announced the deal on Dec. 12.
Whether a company is large or small, mergers and acquisitions can have significant legal implications. Companies may want to work with an attorney to ensure that all agreements and contracts are in order whether it involves one small local business purchasing another or large multinational corporations. An attorney might also be able to assist in the resolution of any disputes that may occur. In some cases, new agreements, such as buy-sell agreements, may also need to be created. An attorney may be able to advise clients about what kinds of legal documents are necessary.
Source: Restaurant Dive, “Waitr grows footprint with $321M Bite Squad acquisition,” Kristine Sherred, 12/13/2018