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DECEMBER 9, 2024

How Grubhub lost its edge in food delivery An industry pioneer got outflanked by Silicon Valley rivals, but it gave Chicago tech cred at an important time | By John Pletz

wenty years after it was founded, Grubhub remains one of the most beloved names in Chicago tech — if not necessarily one of its most enduring companies. Grubhub was a pioneer in enabling consumers to find and order restaurant food online. The company went public a decade ago and in 2021 fetched a $7.3 billion price when it was acquired by European rival Just Eat Takeaway.com. Now it’s being sold to New York-based private company Wonder in what looks like a fire sale that values the company at just $650 million — a deal that includes just $150 million in cash. Grubhub’s local headcount is down to roughly 750 from a peak of See GRUBHUB on Page 21

Private-equity dealmaking set to surge in January Early activity could lead to a slew of deal closures in the first quarter By Mark Weinraub

Lower interest rates and clarity about the political environment should make for a revved-up dealmaking environment in 2025 from private-equity firms flush with cash. The slow exit activity of recent years has made private-equity investors impatient as they wait for returns on aging investments, which also should contribute to an acceleration in deal flows, said Keith Campbell, global privateequity lead at Chicago consulting firm West Monroe. The firm esti-

what sellers are asking mated there was $2.62 for their companies comtrillion in dry powder for pared to what buyers are private-equity shops to willing to pay, has made deploy as of July. firms even more excited “We have seen, within for a pickup in activity in the last couple of months, 2025. our private-equity clients “The bankers are gidbegin to prepare their dy,” Campbell said. “We portfolio companies for see sell-side prep alexiting next year,” CampKeith Campbell ready for next year.” bell told Crain's in an inActivity in the Chicago market terview. “We now have a good prediction for 2025 that things will has already begun to perk up, with 60 deals for Chicago compapick up.” A slower-than-expected 2024, nies made in the third quarter of stemming from delays in interest 2024, the second highest of 16 rate cuts and disparities between cities surveyed by KPMG. A year

ago, 31 deals for Chicago companies were made. West Monroe’s clients are readying their portfolio companies to hit the market in early January, with some putting together financial data for potential buyers, a move that is often not done until a bidder has entered the space. “What should we be thinking of doing?” Campbell said. “What should we shore up? How do we tell that sell-side story to try to maximize valuation? There really are a handful of things that owners and private-equity sponsors will do.” The early prep could mean many deals will be consummat-

ed by the end of the first quarter. Campbell also said privateequity firms were eager to employ artificial intelligence tools to boost the value of companies they acquire. He said applications to boost revenue growth and rein in costs were already available and seen as critical to success. “The private-equity firms themselves have hired data scientists and are soliciting the help of consultants to tell them if they buy the company where the opportunity is,” he said. “A lot of them are deploying AI already into their portfolios. AI is where a lot of these See PE DEALS on Page 21

DAN MCGRATH Getting the coaching thing right hasn’t been the Bears’ strength. PAGE 2

A CHICAGOAN TO KNOW Dr. Michael Adkesson is leading an ambitious Next Century Plan at Brookfield Zoo. PAGE 8