Section 11 · Business Plan
Exit Strategy & Investor Considerations
The management team and founding shareholders envisage a 5–7 year investment horizon with the following exit options available to investors:
With exit options including trade sale, strategic acquisition by a major dairy or FMCG group, and management buyout.
11.1 Exit Options
The management team and founding shareholders envisage a 5–7 year investment horizon with the following exit options available to investors:
Africa’s dairy sector has a history of consolidation, with Lactalis’
acquisition of Parmalat and Danone’s strategic expansion providing
relevant precedents. A profitable, nationally distributed yogurt brand
with strong B-BBEE credentials would be an attractive acquisition target
for a multinational or listed food group seeking to deepen their yogurt
category presence.
the option to acquire investor equity through an MBO funded by
operational cash flows and bank financing, providing a guaranteed
liquidity path.
profile and sector positioning would be attractive to mid-market private
equity funds focused on South African consumer and food sectors.
revenue exceeding ZAR 500 million and sustained profitability, a listing
on the JSE’s Alt-X board could be considered as a longer-term exit
option, though this is not the primary exit thesis.
11.2 Investor Protections
The shareholder agreement will include standard investor protection provisions including anti-dilution rights, tag-along and drag-along rights, board representation (1 investor-nominated director seat), quarterly financial reporting obligations, pre-emptive rights on future capital raises, reserved matter veto rights on material transactions exceeding ZAR 2 million, and key-man insurance on founding executives.
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