DriveHub Marketplace (Pty) Ltd Business Plan › Exit Strategy and Investor Returns

14.1 Exit Options

DriveHub’s founders and management team have identified multiple exit pathways for investors, with a target exit timeline of five to seven years from initial investment:

• Trade Sale: Acquisition by a larger South African or international digital marketplace operator (e.g., Naspers/Prosus, OLX Group, AutoTrader Group) seeking to consolidate or enter the South African automotive marketplace segment. Comparable transactions in the South African digital marketplace sector have been valued at 6–10x EBITDA.

• Strategic Acquisition: Acquisition by an automotive OEM or large dealer group seeking to vertically integrate digital retail capabilities into their operations.

• Private Equity Buyout: Sale to a growth-focused private equity fund specialising in African technology or consumer digital businesses.

• IPO: In the event of exceptional scale and profitability, a listing on the Johannesburg Stock Exchange (JSE) AltX board, though this is considered the least likely near-term exit option.

14.2 Indicative Investor Returns

Based on projected Year 5 EBITDA of R20.8 million and a conservative exit multiple of 7x EBITDA, the indicative enterprise value at exit would be approximately R146 million. For an initial equity investment of R15 million, this represents a 9.7x return on investment and an implied IRR (Internal Rate of Return) of approximately 58% over a five-year holding period. Under the upside scenario (8x EBITDA, Year 5 best case), the enterprise value would reach R192 million, representing a 12.8x return.

These return projections are indicative only and are subject to the assumptions and risks outlined elsewhere in this business plan. Actual returns may vary materially based on market conditions, competitive dynamics, and execution performance.

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