ExpressoFresh Brew Café — Exit Strategy
The founders have identified multiple potential exit pathways to provide liquidity for investors and realise the value created:
Section 17 · Business Plan
Exit Strategy
The founders have identified multiple potential exit pathways to provide liquidity for investors and realise the value created:
The founders have identified multiple potential exit pathways to provide liquidity for investors and realise the value created:
17.1 Trade Sale
The most probable exit route is a trade sale to an established café chain operator, hospitality group, or private equity fund specialising in the food and beverage sector. South African hospitality sector transactions typically value profitable, well-established café businesses at 4–7x EBITDA. At Year 5 EBITDA of R3.17 million and a conservative 5.5x multiple, the indicative enterprise value would be approximately R17.4 million.
17.2 Multi-Location Expansion
An alternative strategy involves reinvesting cash flows to open two to three additional locations across the Western Cape (e.g., Franschhoek, Paarl, Cape Town CBD), creating a multi-unit brand with greater scale value. Multi-unit café businesses typically command higher valuation multiples (6–8x EBITDA) due to demonstrated scalability and operational systems.
17.3 Ongoing Dividend Distribution
For founders who prefer ongoing income over a capital exit, the business is projected to generate sufficient free cash flow to support meaningful dividend distributions from Year 4 onwards, while retaining sufficient reserves for maintenance capex and working capital.
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