TRANSACTION ADVISORY SERVICES
With more than 18 years experience in the Transformation and B-BBEE arena, Siyakha has built strong relationships with black investment groups, individuals and institutional investors. It is our experience that, when it comes to B-BBEE transactions, poor understanding of the requirements of B-BBEE have resulted in unsustainable models, poorly constructed transactions and partnerships formed without the requisite emphasis on long-term compatability and value creation.
We are able to assist you in sourcing the right empowerment partner to help you grow your business. We prefer buy-ins, with new capital retained in the business, to buyouts, where the investor purchases some or all of the equity from an existing shareholder.
Key aspects of or selection process include ensuring that the proposed investor has access to Adequate Capital. Most transactions are equity based, but in some instances debt or mezzanine funding is more appropriate. We also understand and appreciate the importance of Cultural Fit, placing a high premium on a shared ethos and values.
We also believe in the value of Shared Expectations and Vision: Do founders and investors have the same expectations with respect operational involvement in the business and do they share the same vision for the future direction of the company?
In common with many other countries around the world, South Africa is driving the localization process, with a firm commitment to sourcing locally manufactured goods over imported ones. Our consulting teams actively and aggressively promote the localization agenda as a means to drive economic growth and promote South African job creation. Our services include, but are not limited, engagement with local partners and suppliers.
From an investment perspective, we are well placed present the opportunity to local investors. Working in conjunction with Siyakha Implementation Partners, we identify and advise on all possible sources of funding and government incentives which will support a localization model that offsets some of the costs of setting up manufacturing faciltities in the local market. We offer business planning and financial modelling services to drive a commercial model that not only promotes localization but ultimately achieves export readiness.
Our work includes an appropriate level of interaction which may include:
- Developing the financial and operating model
- The right negotiation and protection of IP
- Sourcing suitable black industrialists
- Sourcing funding and co-investors
- Securing primary and secondary uptake agreements
- Full operationalisation and implementation of the implementation plan
Siyakha Capital Advisors has strategic alliances and relationships with several governmental funding agencies. Leveraging these relationships, our SMME team can assist the businesses we work with to secure appropriate funding. We have deep knowledge and expertise in Business Plan Development, Financial Modelling and Funding Applications. We have a track record in managing these applications though the lifecycle, from application through the decision-making process.
DEVELOPMENT FUNDS ADMINISTRATION
Siyakha Capital Advisors recognizes that Government Backed Funding Agencies (GoBFA) may have limited capacity to deal with the volumes of applications received. For this reason, we seek active partnerships with GoBFAs assisting them in realizing their mandate.
We have the capacity, under an agreed mandate, to provide:
- Business Plan Development. Most business plan have critical flaws based on a poor understanding
of the market in which the entity intends to operate, as well as tenuous linkages between various elements of the Business Plan. We critically examine the Business Plan for these and other weaknesses and advise on the appropriate changes.
- Financial Modelling Services. Our financial models are robust and transparent. We pay particular attention to the quality of cashflows with all models presented on a “post funded” basis. High levels of model standardization mean that we can offer quick turnaround times. With complete datasets, we can produce high quality multiyear income, cashflow and balance sheet forecasts in as little as one day.
- Due diligence. We are mindful of the fact that the ultimate funder of an SMME is the taxpayer. For this reason, we interrogate all proposals, and particularly capital expenditures, to make sure that they conform with accepted norms.
- Disbursement of funds against agreed milestones. We only will only disburse funds on agreed milestones in order to manage and limit the risk of the Funder.
- Mentoring and coaching of recipients. Early stage investments have a high risk that all invested capital will be lost. For this reason, we believe that our mentoring and coaching reservices are a strong risk mitigation strategy. We utilize coaches who have a deep understanding in their field.
- Lifecycle Transparency. We believe in complete transparency I vital in building and maintaining trust. For this reason, our cloud based database provides a robust audit trail- ensuring that both SMME and GoBFAs can track the SMME though the proposal, application, evaluation and monitoring lifecycle.