First off, congratulations on what appears to be a so-far successful family venture.
While this is not the best time (the economy) to go public or to obtain funding, here's my thoughts for you (and any one else) to consider before embarking on a final destination.
#1 - tax implications (or estate implications)
If this is an estate issue and the death happened in 2010, there is an immediate need to settle the estate since there are zero federal death taxes this year. But that will likely change for 2011. I may be in error, but I presume payouts need to happen this year, not next, to avoid the IRS hits. In any case...
My presumption (the usual reason why a family business wants to go public) is that some of the family members want to cash out or there has been a death/division in the ownership.
If owners go public, make sure that tax implications are minimized or at least spread out (deferred) over a few years outward to avoid the higher tax brackets.
# 2 - the business itself
If going public is to significantly e-x-p-a-n-d the business, perhaps going public is the last step after you consider other business expansion possibilities such as Sub-Chapter S or a an LLC or LLP.
C Corporations are the usual route (and often the only practical route) to going public, and these types of taxable entities mean the owners pay taxes -- twice. Once on corporate profits and again on dividends. If you elect the Sub S, the corporation pays no taxes, since all deductions and profits "flow through" to the individual owners. And, there can be additional tax benefits in which profits and expenses can be "allocated" not only by owners percentage but also by other factors.
# 3 Management continuity
I am assuming that current management (probably the owners, but could also be non-family employees) are doing a good job with running the business and are on board with the going public plan. If not, my bad.
# 4 Time frame and probability
As we all know (or should) one of the toughest businesses to enter is the restaurant business. Apparently entry is long past in this instance and congratulations are due.
But the reality is that food service is a tough industry and Darwin's Law is uppermost (survival of the fittest) so best I can offer is
A - explore selling out to an existing, much larger food service entity, because "economy of scale" is something to consider, not to mention, "brand value" which is something a larger entity can evaluate much better than any "going public" financial group.
B - look around and see if any of the relatively local financial groups (business owners or financers) might be interested in participating.
C - explore the possibilities with some of the national financial groups, not the huge ones, but the regional/nationals.
D - get your CPA and tax LAWYER (vital in the instance of an estate or a sale) involved at the get-go. You don't want tax "surprises" down the line.
Best of luck in your venture!
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Info on taking a company public? IPO info greatly appreciated.
