Business Valuation Services

Business valuation is an intricate field. At Opes Capital we understand that the inherent, true value of a business is not always clear at first sight, and cannot necessarily be inferred from the information contained in financial statements. We’ve developed a hands-on, alternative approach to valuation, taking the time to form a clear strategic picture before ascribing a value to a business.

We are able to assist clients by preparing independent expert valuation reports in terms of the requirements of the Companies Act or the South African Reserve Bank Exchange Control Regulations. Additionally, we can provide reports for any other purpose that may require such a valuation, for example where required as part of a funding facility in order to test and satisfy lending terms.

Junior Mining Project Origination and Financing

Our track record in deal origination, structuring and execution speaks for itself. We leverage off our local and international networks and have a strong understanding of the Sub-Saharan Africa resources universe, as well as the relevant regulatory and political environment. We put investors in touch with mineral right holders who own mineral deposits but lack the financial and technical resources to take the project up the value curve. We have a well-defined strategy:

  • Identify strategic projects and assets for investors that fit their criteria and risk appetite.
  • Liaise with technical experts and geologists familiar with the project region to get an initial indication of the feasibility and economics of the project.
  • Depending on the information available, we may model the project on a DCF basis or alternatively use measures such as comparisons to previous transactions and relative valuations.
  • Work with the project vendors to understand their aspirations and manage their expectations.
  • Structure and execute the deal, working closely with both parties, along with the various service providers such as legal advisers, tax consultants, regulatory experts and accountants.

We develop partnerships that enable development of early stage mining projects through exploration and the feasibility study up to a bankable stage. Our preference is to work with project vendors that are aligned with investors and therefore choose to remain shareholders in the project and share in the value creation, rather than simply making an early exit. Opes generally acquires an equity position in the projects that we originate, demonstrating commitment to the projects and our alignment with our investors and partners.

Transactional Advisory Mandates

Opes Capital provides comprehensive financial and strategic advice to companies facing the often complex challenges involved in corporate finance activities such as negotiating, structuring and executing transactions.

  • Mergers and Acquisition transactions:
    • Buy side mandates whereby strategic interests or controlling stakes are acquired in target companies.
    • Sell side mandates where entrepreneurs or groups dispose of 100% or majority interests in companies owned.
  • Advising on Black Economic Empowerment deals, either on behalf of companies wishing to introduce B-BBEE partners or on behalf of empowered groups.
  • Developing acquisition growth strategies for companies or group holding companies – including the identification of targets, initialinteractions with potential acquisitions, evaluation of opportunities, negotiations and deal structuring, high level due diligences and negotiation of legal agreements.
  • Balance sheet restructuring, with the aim of optimizing shareholder value.
  • Capital raising on behalf of clients – debt, equity or mezzanine financing.
  • Management Buy Out and Leveraged Buy Out Transactions – typically advising existing or new management consortiums in acquiring an interest in the businesses they manage.

Non-Transactional Advisory Mandates

At Opes Capital we also undertake a series of non-transactional advisory functions for various clients and private equity funds. By providing personal assistance, support, the advice of experts in relevant fields and access to research we are able to help clients make key strategic decisions for their businesses. These include independent expert business valuations, investment analysis and transaction identification on an ongoing basis.

Business Valuation
Business valuation is an intricate field. At Opes Capital we understand that the inherent, true value of a business is not always clear at first sight, and cannot necessarily be inferred from the information contained in financial statements. We’ve developed a hands-on, alternative approach to valuation, taking the time to form a clear strategic picture before ascribing a value to a business. We are able to assist clients by preparing independent expert valuation reports in terms of the requirements of the Companies Act or the South African Reserve Bank Exchange Control Regulations. Additionally, we can provide reports for any other purpose that may require such a valuation, for example where required as part of a funding facility in order to test and satisfy lending terms.

Intermediary
Conflict during the negotiation of a corporate finance transaction is often inevitable and always regrettable as there is usually a requirement for an ongoing working relationship between the buying and selling parties post-transaction. In order to preserve a healthy relationship between seller and purchaser, Opes Capital acts as an intermediary partner during the negotiation proceedings, whilst still working to ensure the best possible outcome for our client.

Confidentiality
The local business climate is extremely competitive. It is therefore critical to protect confidential financial information (for example selling prices, gross margins, salaries, etc.) to the maximum extent possible, even whilst disposing of a business. Our approach is to give our clients peace of mind by allowing them to control the flow of information between seller and purchaser (that is what, when and to whom).

Contact Us

1st Floor Peregrine Building, 6A Sandown Valley Crescent, 2196 Sandton  |  E-mail: info@opescapital.co.za