Bain Capital and General Atlantic are among the private equity firms bidding for TA Associates' bubble tea chain Gong Cha, with the seller seeking a valuation of up to $2 billion. The pricing dynamic appears stretched as the targeted multiple of 30 times EBITDA exceeds what bidders are reportedly willing to pay, setting up a familiar tension between seller expectations and buyer underwriting.

Founded in Taiwan in 2006, Gong Cha has expanded to nearly 2,200 locations across 32 markets. The brand's revenue grew 14% to $217 million last year, driven by expansion in Japan and South Korea, and entry into five new markets including Thailand, Colombia, and Ecuador. TA Associates first invested in 2019 through its growth strategy.

The seven-year hold period has seen aggressive internationalization and company-owned store expansion, both supporting TA's pricing ambitions. With the mid-June bid deadline approaching, the question remains whether continued unit growth can justify the premium multiple or if the deal clears at a lower, more market-consistent valuation.