Eternal Rest Funeral Services — Funding Requirements & Use of Proceeds
Eternal Rest Funeral Services requires total startup funding of R8,000,000 to establish and launch operations. The funding will be sourced from a combination of shareholder equity and commercial bank finance, as summarised in Section 10.3.
Section 11 · Business Plan
Funding Requirements & Use of Proceeds
Eternal Rest Funeral Services requires total startup funding of R8,000,000 to establish and launch operations. The funding will be sourced from a combination of shareholder equity and commercial bank finance, as summarised in Section 10.3.
Funded through a combination of equity contributions and debt finance, with a 3.5-year payback on the equity investment.
11.1 Total Funding Required
Eternal Rest Funeral Services requires total startup funding of R8,000,000 to establish and launch operations. The funding will be sourced from a combination of shareholder equity and commercial bank finance, as summarised in Section 10.3.
11.2 Use of Proceeds
The startup capital will be deployed as follows:
| Use of Funds | Amount (R) | % of Total |
|---|---|---|
| Facility Acquisition and Fit-Out | 2,500,000 | 31.3% |
| Facility Renovation and Chapel Construction | 1,500,000 | 18.8% |
| Fleet Acquisition | 1,500,000 | 18.8% |
| Embalming Equipment and Refrigeration | 700,000 | 8.8% |
| Furniture, Fixtures, and Fittings | 300,000 | 3.8% |
| Marketing, Branding, and Launch Campaign | 500,000 | 6.3% |
| Working Capital (6 Months) | 800,000 | 10.0% |
| Contingency Reserve | 200,000 | 2.5% |
| Total | 8,000,000 | 100.0% |
11.3 Investor Proposition
Eternal Rest offers investors exposure to a resilient, non-cyclical industry with strong growth fundamentals. Key elements of the investment proposition include:
non-discretionary expenditure, providing resilience against economic
downturns.
predictable, annuity-style income, reducing earnings volatility.
are achievable, in line with industry benchmarks.
with equity payback in approximately 3.2 years.
with clear expansion opportunities across Gauteng and nationally.
community service, contributing to dignified end-of-life care.
11.4 Exit Strategy
Potential exit strategies for equity investors include trade sale to a larger funeral services operator (e.g., AVBOB, Doves/Hollard) or private equity acquirer; management buyout by existing shareholders; listing on the JSE AltX as the business scales (medium-term, 5–7 year horizon); or dividend distributions from ongoing profitability, providing an income-based return.
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