Given the current challenging times, we are continuously amazed at how many successful businesses there are out there. The economy is tough; however, good businesses continue to perform. They grow and sell well because buyers can see the potential and opportunities these companies present.
Our four most recent clients have EBITDAs ranging from R40m to R170m. They cover a wide range of industries; packaging, manufacturing, furniture and interiors, and import and distribution. Our two most recent deals closed were both from the manufacturing sector, in aviation and coal mining.
The demand for good South African companies is continuing to grow. For example, in the import and distribution sector, companies that have survived the post-Covid worldwide logistics challenges are now starting to thrive, but in many cases, they need significant working capital support. In addition, the instability in Russia and Ukraine has had a positive impact on international interest in South African acquisitions.
It's potentially an excellent time to consider selling a portion of your business to grow in the current environment. Pricing is good when you compare it to the dividends business owners can usually obtain. Bringing in a partner to help you grow your business is a viable option. In our latest article, we discuss selling a portion of your business as part of an aggressive growth strategy.
Control and choice are certainly in the hands of the seller right now. At Deal Leaders, through our high buyer engagement rate, we currently have five deals pending an average of three (or more) offers per deal, all of which are expected to get to heads of agreement in the last quarter of this year.
Watch our latest webinar: GROWTH, WEALTH OR EXIT: FREEING UP CAPITAL FROM YOUR BUSINESS as a reminder as to why having more than one offer is essential.
We're excited to announce our partnership with Michael Avery’s Classic Business. This is a new weekly feature on Fine Music Radio (FMR), which looks into the engine of M&A impacting the South African economy. Listen to the first segment here.
For further insights, listen live on Tuesday evenings at 6pm. For listeners outside FMR’s broadcast reach, you can listen to Classic Business by downloading the FMR app, available on both Apple and Android platforms. FMR is also on DStv audio channel 838 and can be live-streamed at www.fmr.co.za
Wishing you all the best in business growth.
Rick and Andrew