RenaCare Dialysis Clinic Business Plan › Section 14 › Exit Strategy

14.1 Exit Pathways

The Company has identified three realistic exit pathways over a five-
to seven-year investment horizon. Each pathway has different
characteristics in terms of valuation, transaction complexity,
post-transaction governance and capital structure implications. The
Board will assess relative merits annually from Year 3 onwards and
formalise an exit preparation programme from Year 4.

14.1.1 Trade sale to a private hospital group

The most likely exit route is a trade sale to one of the major
private hospital groups — Netcare, Life Healthcare or Mediclinic. All
three have established strategic interest in renal services. Life
Healthcare’s 2023 acquisition of Fresenius Medical Care’s Southern
African operations demonstrated both willingness to pay and integration
capability at scale. A vertically integrated buyer typically values a
standalone clinic at 6x to 9x trailing EBITDA, reflecting the strategic
benefits of referral integration, procurement synergies and geographic
footprint expansion.

14.1.2 Private equity / infrastructure fund recapitalisation

A private equity recapitalisation would allow founding shareholders
to realise partial liquidity while leaving the business’s growth
trajectory intact. South African healthcare-focused private equity funds
(including Medu Capital, Mineworkers Investment Company and Kagiso
Capital) have historical appetite for healthcare services assets.
Infrastructure funds focused on social infrastructure (Old Mutual,
Stanlib) are also active buyers of healthcare platforms at scale.
Valuation multiples from financial buyers typically trail strategic
multiples by 1 to 2 turns of EBITDA.

14.1.3 Management buy-out / dividend recapitalisation

If the business generates strong free cash flow but market conditions
disfavour a sale, a management buy-out supported by structured debt can
allow financial investors to exit while founding management retains
operational control. This pathway requires meaningful leverage capacity
(which the business develops only from Year 4 onwards under base-case
projections) and typically values the business on a discounted cash flow
basis rather than an EBITDA multiple.

14.2 Indicative Exit Valuation

14.3 Exit Preparation

From Year 4 onwards, Renacare will invest systematically in exit
preparation. Key workstreams include: commissioning an external Vendor
Due Diligence report (clinical, financial, legal, commercial);
transitioning management reporting to audit-ready monthly cycles;
clean-room separation of related-party arrangements; systematic
documentation of clinical protocols and intellectual property; and
engagement of a corporate finance advisor with track record in SA
healthcare transactions.

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 RenaCare Dialysis Clinic (Pty) Ltd.