HealthPlus Pharmacy Group — Exit Strategy
Exit options and the target exit timeline, outlining the value-realisation pathways available to investors.
Section 12 · Business Plan
Exit Strategy
Exit options and the target exit timeline, outlining the value-realisation pathways available to investors.
12.1 Exit Options
HealthPlus’s exit strategy provides investors with multiple liquidity
pathways, each viable depending on market conditions, company
performance, and strategic timing:
Option 1: Trade Sale to Strategic Acquirer
A trade sale to an established pharmacy chain (Dis-Chem, Clicks) or
healthcare group represents the highest-probability exit path. Both
incumbents have demonstrated appetite for acquisitions as a growth
strategy. Dis-Chem has pursued an aggressive acquisition strategy to
close its market share gap with Clicks, while Clicks continues selective
bolt-on acquisitions. A 25-store HealthPlus network with established
locations, customer base, and digital platform would represent an
attractive acquisition target.
Estimated Valuation: 5–7x trailing EBITDA, implying ZAR 480–670
million based on Year 5 projections.
Option 2: JSE Listing (IPO)
A listing on the JSE’s Main Board or AltX provides full liquidity for
all shareholders and access to public market capital for continued
growth. Pharmacy retail businesses are well understood by SA
institutional investors, with Dis-Chem and Clicks serving as established
comparables. An IPO would require a minimum of 3–5 years of audited
financials, corporate governance alignment with King IV, and a
compelling growth narrative.
Estimated Valuation: 8–12x EBITDA (reflecting listed-company premium
and growth trajectory), implying ZAR 770M–1.15B based on Year 5
projections.
Option 3: Private Equity Recapitalisation
A secondary buyout by a private equity fund provides partial or full
exit for founding and Series A investors while bringing in a
growth-oriented capital partner for the next expansion phase (50–100
stores). PE firms with healthcare or retail sector focus in Africa
represent natural buyers.
Estimated Valuation: 4–6x EBITDA, implying ZAR 380–575 million based
on Year 5 projections.
12.2 Target Exit Timeline
The anticipated exit window is Years 5–7, providing sufficient time
for the store network to reach scale, financial performance to
stabilise, and the brand to achieve market recognition. Investor equity
instruments will include standard protective provisions including
drag-along rights, tag-along rights, anti-dilution protection, and
information rights to facilitate a smooth exit process.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of HealthPlus Pharmacy Group (Pty) Ltd.