Baobab Table Experiences Business Plan — Funding Requirement & Capital Structure

Sources and uses

Uses	R m	Sources	R m
Building acquisition & renovation	24.0	Equity	75.5
Kitchen equipment	8.5
Restaurant fit-out & interior	11.0
Performance stage & AV systems	4.5
Furniture, fixtures & décor	6.0
Technology & POS systems	2.0
Initial inventory	2.5
Marketing & brand launch	4.0
Working capital	10.0
Contingency	3.0
Total	75.5	Total	75.5

Figure 21. *Use of funds across the R75.5m raise.*

Capital adequacy and the rollout

The R75.5 million funds Phase 1 in full, building acquisition and renovation, the theatre kitchen and performance stage, fit-out and cultural design, technology, launch marketing, initial inventory and working capital. The Cape Town and Durban venues and the retail and academy build in later phases are funded predominantly from reinvested operating cash flow. As Section 15 shows, this is achievable at the modelled pace but leaves thinner liquidity in Years 3–4. The plan should therefore be structured with either committed follow-on equity or a working-capital facility to protect the rollout against timing and cost variance.

Debt capacity, an option for the lender audience

Although the sponsor seeks equity, the business has meaningful unused debt capacity that founders may elect to use to reduce dilution or to provide the recommended liquidity buffer. Secured against the building, fit-out and equipment and sized conservatively against early cash flow, an illustrative term facility of roughly R28 million would be serviced comfortably, indicative Year-2 debt-service cover of about 1.3×, without threatening the balance sheet. This is presented as an option, not the base case.

Debt-capacity illustration	Value
Indicative term facility	~R28m
Pricing	~13.5% (prime + 300bps)
Indicative Year-2 DSCR	~1.3×
Effect	Reduces equity dilution / funds liquidity buffer

NoteA financeable structure for both audiences

For equity investors, the all-equity base case is clean, debt-free and net-cash throughout. For lenders, the building and equipment base and the cash generation support a modest secured facility with reasonable cover. Either way, the key recommendation is the same: size committed capital to the true peak funding need of the rollout, not merely the Phase 1 headline, and hold a working-capital buffer through the peak-investment years.