Savanna Harvest Supermarket — Exit Strategy
While the founding team is committed to building a sustainable long-term business, it is prudent to outline potential exit opportunities for investors and shareholders. The following exit strategies have been identified based on prevailing market dynamics and industry precedent in the South…
Section 19 · Business Plan
Exit Strategy
While the founding team is committed to building a sustainable long-term business, it is prudent to outline potential exit opportunities for investors and shareholders. The following exit strategies have been identified based on prevailing market dynamics and industry precedent in the South…
With a 3.5–4.0 year payback and exit options including trade sale, franchising and strategic acquisition.
While the founding team is committed to building a sustainable long-term business, it is prudent to outline potential exit opportunities for investors and shareholders. The following exit strategies have been identified based on prevailing market dynamics and industry precedent in the South African retail sector.
19.1 Exit Options
national retail chain seeking to expand its footprint in Limpopo
Province. Potential acquirers include SPAR Group (through its voluntary
trading model), Pick n Pay (through Boxer expansion), or a private
equity-backed retail consolidator. Trade sales in the South African
retail sector have historically been concluded at 4–6x EBITDA multiples
for well-performing independent supermarkets.
model into a franchise offering, enabling rapid expansion through
independent franchisees while generating franchise fees and royalty
income. This model has been successfully demonstrated by retailers such
as SPAR and certain niche grocery brands.
full ownership while expanding into a multi-store supermarket group
across Limpopo and adjacent provinces. This option maximises long-term
value creation but requires additional capital investment and management
capacity.
19.2 Indicative Valuation Range
| Scenario | EBITDA (Year 5) | Multiple | Enterprise Value |
| Conservative (4x EBITDA) | R11,175,000 | 4.0x | R44,700,000 |
| Base Case (5x EBITDA) | R11,175,000 | 5.0x | R55,875,000 |
| Optimistic (6x EBITDA) | R11,175,000 | 6.0x | R67,050,000 |
At the base-case valuation of 5x Year 5 EBITDA, the enterprise value of approximately R55.9 million represents a return of approximately 3.0x on the initial investment of R18.5 million, equivalent to an internal rate of return (IRR) of approximately 28–32% over the five-year period. This return profile is compelling relative to comparable investment opportunities in the South African market.
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