Criteria

We respect the confidential nature of all proposals and are comfortable with signing all reasonable Confidentiality Agreements. Prior to meeting, we would ordinarily require a written proposal which should address the following areas:

  1. The rationale for the proposed transaction
  2. A detailed background and description of the business which should include but not necessarily be limited to:
    1. The history of the business since inception.
    2. Commentary on its location and national and / or international geographical reach.
    3. Specific references to the core focus of the business and commentary on any changes in focus that have either occurred or are planned.
    4. Details of the existing shareholding structure with reference to be made to any changes since inception. In the event that changes in shareholding have occurred, the reasons therefore should be discussed.
  3. Management
    1. Detailed background (including c.v.ís) of all management, current shareholders and key individuals is required together with commentary on each individualís major responsibilities in the business.
    2. Commentary as to which management will be participating in the proposed transaction and the proposed individual shareholding.
  4. Products, Clients and Competition
      Products
    1. Describe in detail the product ranges or services provided and comment on issues such as patents, exclusive contracts, annuity type contracts etc.
    2. Specify the annual contribution of each major product or service to turnover in either monetary or % terms.
    3. Describe any production process, if applicable, and comment on the key sources of supply of raw materials.
      Clients
    1. Discuss the businesses target markets and comment on the approximate size of the market in South Africa.
    2. Indicate the approximate market share that the business currently has and comment on the potential for growth (with compelling reasons).
    3. Discuss the current export activities of the business (if applicable).
    1. Competition
    2. Provide specific details of all major competitors and their respective market shares.
    3. Discuss any perceived threat from these competitors.
    4. Discuss the competitive advantage that the business has over its competitors.
  5. Financial Information
    1. Copies of audited financial statements for the last 3 years are required.
    2. Comment on the reasons for any losses that were incurred or for any major fluctuations in profitability or financial relationships (GP %ís, working capital cycles etc. etc).