IronGrill Burgers (Pty) Ltd Business Plan › Section 14 › Exit Strategy

IronGrill has identified three potential exit pathways for investors, designed to maximise returns while ensuring business continuity:

14.1 Strategic Acquisition (Preferred)

Sale of the business to a strategic buyer such as a national restaurant group (e.g., Famous Brands, Spur Corporation) or an international QSR operator seeking South African market entry. Based on a Year 5 EBITDA of R6.3 million and a conservative 6x EBITDA multiple, the implied enterprise value is approximately R37.8 million, representing a 5.8x return on invested capital.

14.2 Private Equity Buyout

Engagement with a mid-market private equity fund focused on the South African consumer sector to acquire a majority or full stake. PE investors typically target 3–5x returns on a 3–5 year hold period, which aligns with IronGrill’s projected growth trajectory.

14.3 Franchise Rollout & Dividend Model

If acquisition opportunities do not materialise at acceptable valuations, IronGrill will pursue a franchise-led growth model, generating ongoing royalty income (typically 5–8% of franchisee revenue) while distributing regular dividends to shareholders from operating cash flow.

14.4 Valuation Summary

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