👉 Background: Guzman y Gomez was started by two Americans back in 2006 that thought the Mexican food in Australia just wasn’t up to scratch. Since then, they’ve grown Guzman y Gomez to over 150 Mexican restaurants.

👉 What happened: Guzman y Gomez has raised money from some big names like former McDonald's execs, investment bankers and even super funds.

👉 What else: Now, a secondary share sale has taken place, which values Guzman y Gomez at a whoppin $1.5 billion. And the new investors include Australia’s second biggest super fund Aware Super and Athletic Ventures, an investment syndicate of professional sports people.

What's the key learning?

💡A secondary sale is the sale of existing shares in to a third party purchaser. To be a true secondary sale, the sale won't occur alongside an acquisition of the company or the issuing of new shares.

💡Think of it like this.

• You go to the TAG Heuer store to buy a limited edition, blingy watch
• 10 years later, it has tripled in value so you sell it on Antique Roadshow
• When you re-sell it, you make that profit - not TAG Heuer.

💡This is the same with a secondary sale for companies. As opposed to buying shares directly from an issuing company (ie Guzman y Gomez... or the TAG shop), you are buying the shares from another investor - so Guzman don't receive any of the profits. But it helps set the 'value' of that product or share for the broader market.

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