WELCOME to PPC Acquisitions & Finance

"Investing in Tomorrow's Success Stories"

Our distinguishing factor is direct access to private investors and government funding institutions.

Acquisition Consulting:
- Expert guidance on mergers, takeovers, and strategic acquisitions.
- Comprehensive market research and due diligence to ensure profitable ventures.
- Seamless transition strategies for smooth integrations.
Corporate Finance:
- Tailored financial solutions for your business growth.
- Capital raising, from equity to debt financing.
- In-depth financial analyses and forecasting to guide investment decisions.

PPC Finance is an innovative investment firm specialising in the financing and acquisition of engineering and manufacturing enterprises. A key feature that sets us apart is our direct access to private investors and government funding institutions. Our clientele primarily comprises highly accomplished professionals seeking to diversify their portfolios.

Our distinct approach is centred around obtaining a controlling interest of 51% or more, enabling us to steer the strategic direction of our invested companies. Through this strategy, we aim to promote sustainable growth, technological advancement, and industry leadership.

As an accomplished entrepreneur, you have invested significant time and resources in developing your successful enterprise. Why not considered the possibility of realising the fruits of your labour sooner rather than later, while still maintaining a stake in the business.

Get to Know Us

Our Engagement Process

1. Preliminary Assessment:

Identification of potential acquisition: Identification and shortlisting of potential manufacturing or engineering businesses based on factors such as market position, and growth potential.
Initial contact: Approaching of the business owner or directors to express interest in acquisition.
Company profile: Assessment of the company profile.

2. Initial Due Diligence (under Non-Disclosure Agreement):

Financial analysis: Analysis of financial statements (5 year annual financials).
Market analysis: Studying of the market potential, competition, SWOT analysis.
Technical analysis: Capacity, plant size, operational model, sustainability, and efficiency.
Legal and Compliance review: Ensuring the business has all required permits, contracts, and licenses and is compliant with industry regulations. Checking for pending or potential litigations. Including intellectual property (patents)

3. High-level Valuation:

Owners valuation: Request owners valuation
PPC valuation: PPC to make a valuation offer using Price to Earnings (PE) Multiple
Discussion of valuation techniques & fair valuation: Methodologies like Discounted Cash Flow (DCF), market comparable, or asset-based approaches to be discussed with business owner to reach fair valuation.

4. Financing:

Introduction of investor/s: PPC to introduce the business owner to the potential buyer of majority stake.
Funding structure: Determining how much of the purchase will be self-financed vs. borrowed by the investor?
Due diligence by owner: The owner/s to conduct due diligence on potential buyer/s.
Letter of intent: The buyer and seller to sign a letter of intent indicating the basics of the deal. It includes the price, payment method (lump sum, instalments), transition processes, and any conditions precedent (i.e. results of due diligence).

5. Detailed due diligence (may include administration fee paid to seller by the buyer):

NDA: Execute NDAs with the target company to protect sensitive information and ensure confidentiality during the due diligence process.
Financial analysis: Analysis of all finances within the business including (bank accounts, tax accounts, assets, liabilities, equity, etc)
Employee considerations: Discussion the future of existing employees, potential layoffs, and any changes in management. tax records, and any relevant financial documents.
Operational Analysis: Reviewing the business operations, including supply chain, machinery, workforce, and infrastructure.
Environmental considerations: For manufacturing units, evaluating environmental concerns, emissions, waste disposal mechanisms, and compliance with environmental regulations.

6. Admin & Legal Formalities:

Integration plan: Drafting new roles and responsibilities for all directors (old and new) and senior management. The plan also addresses aspects such as HR, IT systems, goals, culture, and business operations.
Drafting the agreement: Engaging the respective legal representatives to draft the Sale of Shares Agreement or Asset Purchase Agreement.
Regulatory approvals: Ensuring compliance with the industry bodies.

7. Closing the Deal:

Payment: Making the agreed payment based on negotiated terms.
Transfer of ownership: Ensure all assets, intellectual properties, permits, and licenses are transferred to the new owner.
Notifying the CIPC: Notify the Companies and Intellectual Property Commission (CIPC) about changes in ownership and directorship

8. Integration & Transition:

Communicate: Informing all stakeholders (employees, suppliers, customers) about the acquisition and any potential changes.
Operational Integration: Aligning the business processes, integrating IT systems, and streamlining operations.

Continuous Review: Regularly reviewing financials, operations, and market position to ensure alignment with strategic goals.

Mission & Vision statements

Mission:

Identify & Invest: Focus on engineering and manufacturing companies with untapped potential and solid foundations.
Strategic Guidance: Utilise our strategic proficiency to effectively guide our selected investments towards achieving market leadership.
Sustainable Growth: Ensure sustainable growth by incorporating environmentally sustainable practices in our strategies.
Stakeholder Enrichment: Through our investments, we aim to create value for all stakeholders, including employees, clients, and the wider South African economy.

Vision: "To be the premier financial partner and catalyst for growth in the manufacturing and engineering sectors of South Africa. We envision a future where every business, regardless of size, has access to the funding and expertise needed to excel, innovate, and contribute to the economic prosperity of the nation."

Why choose us?

1. Access to Capital: To undertake expansion, technology upgrades, and research and development in the manufacturing and engineering sectors, significant capital is often required. By acquiring a majority stake in these firms, we can provide substantial capital injections that enables funding for essential projects and initiatives.

2. Financial Expertise: Our financial expertise enables us to assist manufacturing and engineering companies in optimising their financial strategies, managing cash flow, and making informed investment decisions to improve financial stability and profitability. By leveraging our skills and knowledge, we can support our clients in achieving their financial objectives.

3. Risk Mitigation: we have access to risk management tools and strategies that can help mitigate financial risks for manufacturing and engineering companies. We understand that these sectors are often subject to various risks, including economic fluctuations, regulatory changes, supply chain disruptions, and operational risks.

4. Access to Networks: We have extensive networks of investors, lenders, and business partners, which can open up new opportunities for collaboration, joint ventures, and access to additional markets and funding for our manufacturing and engineering clients.

5. Strategic Guidance: We provide strategic guidance and support to our clients in key areas of business development, such as mergers and acquisitions, market expansion, and diversification.

6. Enhanced Governance: As a majority partner, we can help improve our clients' corporate governance practices and financial transparency, which can enhance their reputation and attractiveness to stakeholders. This can result in increased trust, improved relationships with investors, and a more positive perception in the marketplace.

7. Long-Term Perspective: Our long-term view of investments means that we are committed to the growth and sustainability of our investments over time. This often results in stability, allowing management to focus on long-term strategic objectives. Our approach is to be patient and supportive as the business evolves, while always monitoring progress and making adjustments as needed.