Frequently Asked Questions

Answers to the questions shareholders and business owners ask throughout their growth-to-exit journey.

Transaction Readiness & Exit Planning

Absolutely.

Many successful transactions begin years before an exit. Understanding your business value, strategic options, market positioning and buyer appetite early allows you to prepare effectively and maximise value when the timing is right.

We regularly support shareholders with valuation, strategic planning and transaction readiness long before a formal process begins.

Transaction readiness extends beyond financial performance.

Acquirers typically assess:

  • Quality of earnings
  • Management capability and succession depth
  • Growth profile and scalability
  • Customer concentration
  • Governance and systems
  • Market positioning
  • Risk profile

Preparation often has a significant impact on value and transaction success.

There is rarely a perfect time.

Transactions are commonly driven by:

  • Succession planning
  • Shareholder liquidity objectives
  • Growth opportunities
  • Strategic partnerships
  • Industry consolidation
  • Retirement planning

The strongest outcomes are often achieved when businesses are performing well and optionality remains high.

Yes.

Not every shareholder wants a full exit. Many business owners seek:

  • Partial liquidity events
  • Growth capital partners
  • Strategic investors
  • Minority investments
  • Succession solutions

This enables shareholders to realise value while remaining involved in future growth.

Yes.

Receiving an offer is only one part of the transaction process.

We help assess:

  • Valuation appropriateness
  • Deal structure
  • Commercial terms
  • Market alternatives
  • Negotiation leverage
  • Execution risk

The best outcome is not always the first offer received.

Common challenges include:

  • Starting preparation too late
  • Limited buyer engagement
  • Weak positioning
  • Focusing only on valuation
  • Underestimating diligence requirements
  • Running an unstructured process

Preparation and disciplined execution generally lead to stronger outcomes.

Sell My Business

We advise across the full transaction lifecycle, including:

  • Full business sales and exits
  • Partial disposals and liquidity events
  • Strategic equity partnerships
  • Acquisitions and buy-side mandates
  • Management buy-outs and buy-ins
  • Shareholder exits and succession transactions
  • Corporate divestitures and carve-outs

Every process is tailored to shareholder objectives and desired outcomes.

Business value is often enhanced by:

  • Sustainable earnings growth
  • Recurring revenue streams
  • Diversified customer exposure
  • Strong management teams
  • Scalable operations
  • Clear growth opportunities
  • Strategic market positioning

Preparation before engaging the market can materially improve outcomes.

No.

Sophisticated acquirers evaluate multiple factors including:

  • Deal structure
  • Working capital mechanisms
  • Earn-outs
  • Management retention
  • Transition arrangements
  • Growth opportunities
  • Risk allocation

The best transaction is typically the optimal overall outcome, not simply the highest headline price.

Transaction timelines vary depending on complexity, buyer engagement and diligence requirements.

A typical process includes:

  1. Preparation and positioning
  2. Market engagement
  3. Indicative offers
  4. Due diligence
  5. Negotiation and structuring
  6. Completion and implementation

Early preparation generally improves execution certainty and outcomes.

Yes.

Receiving an offer is only one part of the transaction process.

We help assess:

  • Valuation appropriateness
  • Deal structure
  • Commercial terms
  • Market alternatives
  • Negotiation leverage
  • Execution risk

The best outcome is not always the first offer received.

Confidentiality is critical.

We implement structured confidentiality protocols, NDCAs, controlled information sharing processes and staged engagement approaches to protect sensitive information throughout the transaction lifecycle.

Value My Business

Business valuation requires both rigorous financial analysis and strategic insight. A credible valuation extends beyond historical financial performance and must reflect the quality, sustainability, and future prospects of the business.

In assessing value, we consider a range of quantitative and qualitative factors, including:

  • Historical and forecast financial performance
  • Growth prospects and scalability
  • Market position and competitive advantages
  • Comparable transactions
  • Comparable publicly listed sector peers
  • Industry dynamics and market trends
  • Strategic value drivers and potential synergies
  • Business-specific risks and opportunities

A robust valuation often serves as the foundation for critical strategic decisions, including capital raising, acquisitions, shareholder transactions, succession planning, and business exits.

Common valuation methodologies include:

  • Earnings multiple approaches
  • Discounted cash flow analysis
  • Comparable company analysis
  • Comparable transaction analysis
  • Asset-based methods

The appropriate methodology depends on sector, maturity, purpose and growth profile.

Valuations support a range of strategic decisions including:

  • Exit planning
  • Succession planning
  • Capital raising
  • Shareholder transactions
  • Internal restructuring
  • Strategic planning

Understanding value creates optionality and informs decision-making.

Yes.

Valuation processes often identify:

  • Earnings enhancement opportunities
  • Growth drivers
  • Margin improvement initiatives
  • Strategic gaps
  • Risk factors

Valuation can therefore become an important strategic tool rather than simply a transaction exercise.

Raise Capital

Yes.

We advise businesses seeking capital for:

  • Growth and expansion initiatives
  • Acquisitions
  • Working capital requirements
  • Project development
  • Strategic investments
  •  Balance sheet optimisation

We support both debt and equity transactions.

We advise across a broad capital spectrum including:

  • Senior debt
  • Structured finance
  • Acquisition finance
  • Equity capital
  • Strategic investors
  • Private equity funding
  • Hybrid capital solutions

Our role includes structuring, investor engagement and execution support.

The answer depends on your objectives.

Debt may suit:

  • Working capital requirements
  • Asset-backed growth initiatives
  • Acquisitions
  • Expansion projects

Equity may suit:

  • High-growth businesses
  • Strategic expansion
  • Large investment programmes
  • Balance sheet strengthening initiatives

We help determine the optimal capital structure aligned to business objectives.

Investors typically assess:

  • Management capability
  • Financial performance
  • Market opportunity
  • Growth strategy
  • Scalability
  • Industry outlook
  • Governance and risk profile

Preparation and investor readiness significantly improve funding outcomes.

Yes.

We support businesses pursuing acquisitions, expansion initiatives and strategic growth opportunities by advising on appropriate funding structures and capital solutions.

This may include:

  • Acquisition finance
  • Growth capital
  • Equity partnerships
  • Debt funding structures
  • Hybrid capital solutions

Our objective is to align capital structures with strategic growth plans and transaction objectives.

Transaction Support & Acquisitions

We support clients throughout transaction execution including:

  • Financial due diligence support
  • Financial modelling
  • Valuations
  • Deal analytics
  • Transaction structuring
  • Negotiation support
  • Strategic and financial analysis
  • Due diligence coordination

Our role is to help clients navigate complexity and execute effectively.

Yes.

We advise acquirers across:

  • Target identification
  • Screening and strategic fit analysis
  • Valuation
  • Financial modelling
  • Due diligence support
  • Negotiation assistance
  • Execution management

Our objective is to help clients execute value-accretive acquisitions.

Absolutely.

Preparation frequently creates value.

We support businesses with:

  • Exit readiness assessments
  • Strategic positioning
  • Financial preparation
  • Equity story development
  • Risk identification
  • Transaction readiness planning

The objective is to optimise positioning before market engagement.

Strong outcomes are typically driven by:

  • Preparation
  • Strategic positioning
  • Competitive tension
  • Access to the right counterparties
  • Disciplined execution
  • Effective process management

Our focus is not simply completing transactions, but optimising outcomes.

About Kensington Capital

We focus on advising South African mid-market to large-cap businesses. We partner with  South African businesses generating annual EBITDA of R15 million and above but can execute transactions ranging from mid-market to large-cap.

We partner with shareholders to engineer their growth-to-exit journey, delivering strategic advice across value creation, acquisitions, capital raising, and exit transactions.

While transaction size is important, strategic positioning, growth profile, market attractiveness and transaction readiness are often equally important drivers of successful outcomes.

Kensington Capital is an independent corporate finance adviser specialising in the South African mid-market. We advise on transactions typically valued between R50 million and R3 billion, serving established businesses with annual revenues (turnover) exceeding R100 million and EBITDA of more than R15 million.

Our client base includes private companies, private equity firms, multinational corporations, investment holding companies, family-owned businesses, state-owned entities and high-net-worth individuals. We provide objective, partner-led advice across mergers and acquisitions, capital raising, valuations and strategic advisory assignments.

We are sector agnostic and support businesses across all industries including industrials, manufacturing, mining services, infrastructure, business services, energy and broader private sector markets.

Our focus is identifying strategic value drivers and achieving the best outcome for shareholders.

Yes.

We primarily advise founder-led, privately owned and entrepreneurial businesses across the South African mid-market.

We understand that shareholder transactions often involve strategic, financial and personal considerations, and work closely with shareholders throughout the process.

Kensington Capital is a specialist South African corporate finance and M&A advisory firm focused on private sector mid-market businesses.

Our approach combines:

  • Specialist South African mid-market focus
  • Senior-led execution and partner involvement
  • Integrated solutions across M&A, valuations, capital raising and transaction support
  • Deep investor, lender and corporate networks (with a global reach)
  • Independent, conflict-free advice
  • Strong transaction execution capability

We work closely with shareholders, founders and management teams through critical strategic and transaction decisions.

We take an active role throughout the process.

Our team typically manages:

  • Process execution
  • Buyer and investor engagement
  • Marketing documentation
  • Financial analysis
  • Negotiations
  • Due diligence coordination
  • Transaction management

This allows management teams to remain focused on operating the business.

Transactions are infrequent, complex, and often transformational events for shareholders. They require careful planning, disciplined execution, and access to the right counterparties to maximise value and achieve a successful outcome.

Shareholders appoint Kensington Capital to provide:

  • Strategic advice and objective decision support
  • Access to qualified local and international buyers, investors, and lenders
  • Transaction structuring and execution expertise
  • Competitive process management
  • Commercial negotiation leadership
  • Market intelligence and valuation insight
  • Confidentiality and stakeholder management

By combining strategic advice, transaction expertise, and extensive market reach, we help shareholders navigate critical decisions with confidence and achieve superior outcomes.

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