Kasi Crisps — Exit Strategy & Investor Returns
The company is structured to provide investors with multiple credible exit pathways within a 5–7 year horizon:
Section 14 · Business Plan
Exit Strategy & Investor Returns
The company is structured to provide investors with multiple credible exit pathways within a 5–7 year horizon:
On a 2.8-year payback and a ZAR 72 million five-year NPV, with exit options including a trade sale, strategic acquisition and a potential listing.
14.1 Exit Pathways
The company is structured to provide investors with multiple credible exit pathways within a 5–7 year horizon:
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Trade Sale (Primary): The South African FMCG sector has demonstrated active M&A, with strategic acquirers (PepsiCo, Pioneer Foods/PepsiCo, Tiger Brands) historically acquiring successful challenger brands at 8–12x EBITDA. At the base-case Year 5 EBITDA of ZAR 60.5M, this implies an enterprise value of ZAR 484–726M.
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Private Equity Secondary: Sale of equity stake to a growth-stage PE fund seeking established food manufacturing assets with proven cash flows.
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IPO: Listing on the JSE AltX or main board becomes viable if the company achieves Year 5 revenue targets, providing liquidity for all shareholders.
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Management Buyout: Structured buyout facilitated by debt financing, available as a fallback if external exit opportunities are suboptimal.
14.2 Projected Investor Returns
| Exit Scenario | Year | EBITDA Multiple | Enterprise Value (ZAR M) | Equity Value (ZAR M) | MOIC |
|---|---|---|---|---|---|
| Trade Sale (Base) | Year 5 | 10x | 605 | 545 | 9.9x |
| Trade Sale (Conservative) | Year 5 | 8x | 484 | 424 | 7.7x |
| PE Secondary | Year 4 | 8x | 336 | 276 | 5.0x |
| IPO | Year 5 | 12x | 726 | 666 | 12.1x |
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