Mom's Touch Re-attempts Trillion-Won Sale

Private equity firm KL&Partners, the owner of fast-food brand Mom's Touch, is once again pursuing a sale valued at approximately 1 trillion won. Since the previous sale fell through in 2022, Mom's Touch has improved its performance and financial standing through operational reforms, enhancing the likelihood of a successful exit this time. KL&Partners acquired a 56.8% controlling stake from Mom's Touch's founder in 2019 for about 193.7 billion won. In 2022, the firm injected an additional 120 billion won, raising its stake to over 95%. The proposed sale price of around 1 trillion won at the time was deemed too high relative to the company's earnings, leading to the deal's collapse.

Following the failed sale, Mom's Touch concentrated on internal operational improvements. The company standardized cooking processes and logistics to reduce quality and profit variations across stores, focusing on enhancing franchisee profitability. Its overseas market strategy was also revised, shifting to a Master Franchise (MF) model where operating rights are delegated to local partners. Starting with Thailand in 2022, Mom's Touch expanded into Mongolia in 2023, Laos in 2024, and Uzbekistan in 2025 via the MF model. It also expanded its global business by entering Japan directly in 2024.

Through these internal strengthening efforts, Mom's Touch's profitability has markedly improved. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which stood at 23.7 billion won in 2019, exceeded 100 billion won last year (estimated 2025). The operating profit margin also rose from the 6% range to over 10%. Last year (estimated 2025), revenue reached 479 billion won, and Point of Sale (POS) sales across all domestic stores surpassed 1 trillion won annually, achieving strong performance. This demonstrates Mom's Touch's ability to generate stable cash flow.

The improved cash generation capacity has rationally adjusted the basis for valuing the company at around 1 trillion won. With EBITDA expanding to approximately 100 billion won, applying a 1 trillion won valuation results in an enterprise value multiple of around 10 times, easing the valuation burden. KL&Partners has already recouped some of its investment through a post-acquisition recapitalization, and the relatively low pressure for an immediate exit can enhance its negotiating power in the sale process. While Mom's Touch's franchisee-centric structure and limitations to growth in the domestic market may be concerns for investors, its robust cash-generating business model makes it a target for financial investors (FIs). KL&Partners plans to receive proposals by April 30 to select an underwriter and aims to complete the sale within the year.