Granvora Feeds — Exit Strategy & Investor Returns
The Company’s business model and market positioning provide multiple credible exit pathways for investors:
Section 13 · Business Plan
Exit Strategy & Investor Returns
The Company’s business model and market positioning provide multiple credible exit pathways for investors:
On an NPV of ZAR 95–120 million (at a 15% WACC), with a 4–5 year payback and exit options including trade sale and strategic acquisition.
13.1 Exit Pathways
The Company’s business model and market positioning provide multiple credible exit pathways for investors:
| Exit Option | Timeline | Indicative Valuation Multiple | Commentary |
|---|---|---|---|
| Strategic Sale | Year 5–7 | 6–8x EBITDA | Sale to major feed/poultry group (Astral, RCL, Meadow, or international entrant) |
| Private Equity Secondary | Year 4–6 | 5–7x EBITDA | Sale to growth-stage PE fund seeking agri-industrial assets |
| Management Buyout | Year 5+ | 5–6x EBITDA | Founder team acquires investor stake via leveraged buyout |
| JSE Listing (AltX) | Year 7+ | 8–10x EBITDA | IPO on JSE Alternative Exchange; requires sustained profitability track record |
13.2 Illustrative Investor Returns
Based on a Year 5 strategic sale at 7x trailing EBITDA:
| Metric | Value |
|---|---|
| Year 5 EBITDA | ZAR 136.5 million |
| Enterprise Value (7x EBITDA) | ZAR 955.5 million |
| Less: Net Debt (Year 5) | (ZAR 19.0 million) |
| Equity Value | ZAR 936.5 million |
| Total Equity Invested | ZAR 42.5 million |
| Money Multiple (Equity) | 22.0x |
| Equity IRR | ~85% (5-year holding period) |
Note: These illustrative returns assume a successful execution of the business plan and favourable exit market conditions. Actual returns may vary materially based on operational performance, market conditions, and exit timing.
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