Titan Footwear Manufacturing (Pty) Ltd Business Plan › Section 13 › Exit Strategy

Titan Footwear recognises that equity investors require clarity on potential exit pathways and timelines. The Company’s growth trajectory and strategic positioning support multiple exit options, with the optimal path to be determined based on market conditions, company performance, and investor preferences at the relevant time.

13.1 Exit Options

Option 1: Strategic Trade Sale (Preferred — Year 5–7)

Sale of the business to a strategic acquirer, likely an international footwear manufacturer or distributor seeking to establish or expand South African manufacturing presence. Potential acquirers include global PPE companies, international footwear brands seeking local production capability, or regional competitors pursuing consolidation. Target valuation: 5–7x EBITDA.

Option 2: Private Equity Secondary Sale (Year 4–6)

Sale of the founding/early-stage equity position to a growth-stage private equity fund. This option provides liquidity to early investors while bringing growth capital and operational expertise for the next phase of expansion. Multiple PE funds are active in the South African consumer and industrial sectors.

Option 3: JSE Listing (Year 7–10)

Initial public offering on the Johannesburg Stock Exchange, either on the Main Board or the AltX for mid-cap companies. This option requires sustained profitability, governance maturity, and sufficient scale (typically ZAR 500M+ market capitalisation). While the longest-dated option, it provides the broadest liquidity and potential for maximum valuation.

Option 4: Management Buyout (Year 5+)

Structured buyout by the management team, potentially funded through a combination of management equity rollover, vendor financing, and third-party debt. This option ensures business continuity and aligns with the founding team’s long-term commitment to the enterprise.

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