LedgerPro — Exit Strategy
LedgerPro’s investors and shareholders may consider the following exit options, typically executable from Year 5 onwards depending on market conditions and the firm’s performance:
Section 18 · Business Plan
Exit Strategy
LedgerPro’s investors and shareholders may consider the following exit options, typically executable from Year 5 onwards depending on market conditions and the firm’s performance:
Underpinned by recurring monthly fee revenue and a scalable, technology-enabled service model.
LedgerPro’s investors and shareholders may consider the following exit options, typically executable from Year 5 onwards depending on market conditions and the firm’s performance:
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Trade Sale: Sale of the business (or a controlling interest) to a mid-tier or national accounting firm seeking to acquire a technology-enabled SME practice. Accounting practices in South Africa typically trade at 0.8x to 1.5x annual recurring revenue, implying a potential valuation of R11.4 million to R21.4 million based on Year 5 revenue projections.
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Management Buyout (MBO): One or more directors acquire the shares of departing investors at a negotiated price, funded through retained earnings, personal capital, or external financing.
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Merger: A strategic merger with a complementary professional services firm (e.g., a legal practice, HR consultancy, or IT services provider) to create a diversified professional services group.
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Dividend Recapitalisation: If an outright exit is not pursued, investors receive attractive ongoing dividend returns from the firm’s growing profitability, effectively recouping their investment through cash distributions over time.
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