Greenfields Poultry Feed — Exit Strategy and Investor Returns
The business model supports multiple exit pathways for investors, providing flexibility depending on market conditions and strategic developments:
Section 13 · Business Plan
Exit Strategy and Investor Returns
The business model supports multiple exit pathways for investors, providing flexibility depending on market conditions and strategic developments:
On a 4.2-year payback and an R142 million 10-year NPV, with exit options including a trade sale, strategic acquisition and a potential listing.
The business model supports multiple exit pathways for investors, providing flexibility depending on market conditions and strategic developments:
13.1 Potential Exit Scenarios
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Trade Sale: Sale of the business to a strategic acquirer such as a regional agribusiness company, international feed manufacturer entering the South African market, or an existing industry participant seeking capacity expansion. Given the market valuation multiples for established feed businesses (typically 6-8x EBITDA), a Year 5 trade sale could yield R 380-500 million in enterprise value.
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Management Buyout (MBO): Structured buyout by the founding management team, potentially supported by DFI or private equity funding, enabling founders to acquire full ownership.
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Private Equity Recapitalisation: Introduction of a private equity partner to acquire the institutional investor’s stake, providing liquidity while enabling continued operational management.
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IPO (Long-Term): Listing on the JSE AltX or main board once the company has achieved sufficient scale and track record, though this is considered a longer-term option (Year 7+).
13.2 Projected Investor Returns
| Metric | Value |
|---|---|
| Internal Rate of Return (IRR) | 28.4% |
| Net Present Value (NPV at 15% WACC) | R 142 million |
| Payback Period | 4.2 years |
| Year 5 EBITDA | R 63.3 million |
| Implied Enterprise Value (7x EBITDA) | R 443 million |
| Equity Value (net of debt) | R 435 million |
| Return on Initial Equity (R 25.5M) | 17.1x |
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