Continental Auto Exports — Exit Strategy & Investor Returns
The business is designed to provide investors with multiple exit pathways within a 5–7 year investment horizon:
Section 13 · Business Plan
Exit Strategy & Investor Returns
The business is designed to provide investors with multiple exit pathways within a 5–7 year investment horizon:
Five-Year IRR
~68%
With investor returns benchmarked at a conservative 6x EBITDA exit, an 18-month payback and exit options including trade sale and strategic acquisition.
13.1 Exit Options
The business is designed to provide investors with multiple exit pathways within a 5–7 year investment horizon:
| Exit Route | Timeline | Indicative Valuation Basis | Probability |
|---|---|---|---|
| Trade Sale | Year 5–7 | 6–8x EBITDA | High |
| Management Buyout | Year 5–6 | 5–7x EBITDA | Medium |
| Strategic Merger | Year 4–6 | Negotiated premium to book value | Medium |
| Dividend Recapitalisation | Year 3+ | Distribution of excess cash | High |
| IPO (JSE AltX) | Year 7+ | Market-based PE multiple | Low-Medium |
13.2 Indicative Investor Returns
Based on the projected Year 5 EBITDA of USD 4.48 million and assuming a conservative 6x EBITDA exit multiple:
| Return Metric | Value |
|---|---|
| Year 5 EBITDA | USD 4,483,000 |
| Exit Multiple (Conservative) | 6.0x |
| Indicative Enterprise Value | USD 26,898,000 |
| Less: Net Debt | USD 0 (net cash position) |
| Indicative Equity Value | USD 26,898,000 |
| Investor Share (40%) | USD 10,759,200 |
| Investor Capital Invested | USD 800,000 |
| Money Multiple | 13.4x |
| IRR (5-Year) | ~68% |
| Investor Returns Sensitivity: At a conservative 6x EBITDA multiple, the projected 5-year money multiple for Insight Capital Partners is 13.4x with an IRR of approximately 68%. Even at a 4x EBITDA multiple, the money multiple remains attractive at 8.9x with an IRR exceeding 50%. |
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