A. THE BUSINESS -
• This National company manufactures and distributes a wide range of Home Products and accessories via branches and agents located inWestern Cape, Garden Route, Johannesburg, Pretoria, Gauteng, KZN, Free State, Eastern Cape, Limpopo. They also have International agents in Namibia, Mauritius, Seychelles, Zambia and Zimbabwe • The company has evolved over nearly 30 years in operation; initially started out as a small business in the early 1980’s and has grown to a brand that currently holds 60% of the national market.
• The Business experienced a difficult period during the recent recession and was hard hit by the failure of various agents businesses, resulting in huge bad debt write-offs over the past few years.
• In order to continue operating, the owners injected further working capital in the amount of R3,8 million to fund and sustain the business during a difficult trading period.
• They are now poised to recover from the past setbacks and forge ahead in an improving market, but lack the working capital that is required, which is stinting their growth and hampering an entry into a buoyant export market
B. THE INVESTMENT OFFERING -
• The current shareholders are offering an opportunity and seeking a new partner to invest loan capital in the company amounting to between R2,5 mil and R3,5 mil; in exchange for wish they are prepared to relinquish up to 50% of their shares in the Company .
• The idea is that the investor/partner will fulfil an EXCO role and add value to and assist with strategic planning in the running of the operations.
• The Investor will retain their share in the Company, even though the full amount of the loan is expected to be repaid within 3 years.
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