There are many reasons why international acquirers look to South Africa for opportunities. We remain a good ‘springboard into Africa’, but more importantly, the country has a well-regulated economy with growth opportunities that surpass, by far, traditional growth rates in the developed world. These are obvious reasons for extending your research for acquirers into the international market. Of equal importance, though, is the influence a global strategy can have on local acq

An earn-out is a deal structure in which the seller warrants that expected profit targets will be achieved, in order to justify the sale price agreed to. Typically the deal will look something like this: The sale price (often a really impressive number) is agreed to, based on past earnings and expected future earnings. The seller typically receives about one-third of this price upfront and the balance each year for two or three years, provided the profit targets are reached.

Personally, I have only ever lost deals at the point where, in representing the seller, I put a price on the table. If the price is too high you are deemed as ‘greedy’; if the price is too low, then what’s the point?! Our strategy is always to request offers from interested parties once we have shared sufficient information for them to make an informed decision. The request for offers is underpinned by a number of important elements and learnings: firstly, our experience ha

Of the business owners I speak to, and the attendees at our Masterclasses, the vast majority have experienced some form of deal opportunity which has not concluded or has failed dismally below original expectations. Invariably the owner is left asking what on earth happened, and why did this look like such a good deal, but resulted in endless frustration, wasted energy and time? Firstly, it must be said that business owners rarely have the experience to match that of the typi

Risk is a critical element of any deal, and it would be remiss of a seller to assume that future risk is entirely the acquirer’s problem. That said, acquirers often lack creativity when it comes to managing post-acquisition risk. They assume that the only way to manage their risk is through an earn-out structure: Keep the owner in the role of MD for a couple of years, and only pay out the full purchase price once certain profit warranties have been met. As I have mentioned in

This topic always sparks meaningful debate. To maximise value in a business sale, it is essential to be clear on what truly matters to you and to run a structured process that is designed to deliver on those priorities. At the same time, caution is required. Being too rigid in your assumptions about non-negotiables can unintentionally deter serious acquirers. Some may come very close to meeting your expectations but walk away if they sense there is no room for flexibility. Ke