Mr. Toilet — Exit Strategy
The founders and investors anticipate a holding period of 5 to 10 years. The following exit strategies are being considered:
Section 21 · Business Plan
Exit Strategy
The founders and investors anticipate a holding period of 5 to 10 years. The following exit strategies are being considered:
Enterprise value at 5x EBITDA by Year 5, implying an equity value of roughly R35.8 million after debt repayment.
The founders and investors anticipate a holding period of 5 to 10 years. The following exit strategies are being considered:
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Trade sale to a national operator: The most likely exit route. Sanitech (Waco International), Bidvest, or a similar industrial services group would be natural acquirers of a well-established, profitable regional operator.
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Management buyout (MBO): The founding management team may acquire the equity stakes of financial investors using a combination of retained earnings and external debt financing.
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Private equity investment: A partial exit through a private equity recapitalisation, allowing original investors to realise returns while retaining management and growth momentum.
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Franchise model: Converting the business model to a franchise or licence structure, enabling the founders to earn royalty income while reducing operational involvement.
The target exit valuation is 5–7x trailing EBITDA, which, based on Year 5 projections, implies an enterprise value of R37–52 million.
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