Acquisitions a high priority among investors

Posted On Thursday, 08 July 2004 02:00 Published by
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Golding M&A business doing well

Golding Mergers & Acquisitions, a member of the Pam Golding Property group, have recently concluded a number of transactions involving a variety of prominent businesses, which include high profile restaurants, franchises, a filling station and a resort.

Operating nationally, the company is in the process of expanding its resource base in order to satisfy a growing demand for business acquisitions. It is headed by joint MD's Jeff Lubner and Derrick van Houten - the latter having recently joined the company, and who is also an entrepreneur with considerable and diverse experience.

Says Lubner: "We are currently receiving a high volume of mandates from interested investors, which reveal a number of different and increasing trends, including a strong trend among aspirant black entrepreneurs wishing to acquire their own businesses. While we are active nationally, we currently find a strong demand for businesses of various natures in the Cape Town area, and in particular, cash generating businesses - possibly indicating short-term investment strategies.

"There is also high interest among more mature investors who are looking to acquire businesses for their adult offspring, investors who may have taken early retirement or recently been retrenched, or who through circumstances or a lifestyle shift need to create their own employment. There are also enquiries from those who are already well established with their own business or businesses - who are seeking further interests or even multiple businesses.

"At present we have a significant number of mandates to purchase and sell businesses in the order of approximately R100 million in total. These are for diverse operations from manufacturing to retail and including plastics, filling stations and franchise businesses and ranging in price from R5 million to R100 million," says Lubner. He says that generally investors are seeking sound investment returns on capital in the region of 20-25 percent after tax.

Adds van Houten: "A variety of opportunities exist, mainly in the manufacturing sector, to invest in medium to large businesses - which interestingly include several inventors with great ideas and vision who have invested considerable time and capital in development and design of creative new concepts," he says.

Publisher: Cape Business News
Source: Cape Business News

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