To implement successful B-BBBEE ownership services for clients.
EconoBEE Ownership will arrange and implement the sale of shares for businesses.
- Identifying and evaluating opportunities
- Identifying new shareholders
- Business plan for growth
- Contracts, agreements
- Financing arrangements
- B-BBEE impact studies
B-BBEE is a reality in South Africa. In order to win business and satisfy clients, many businesses must produce a valid, good BEE status level certificate.
One of the elements on which to earn BEE points is Ownership.
The objective is of this service is to assist in the implementation of ownership schemes for a business in order to:
- Make business sense
- Win business
- Earn maximum B-BBEE points
There are many models for the sale of shares. Some make business sense, but many do not. Some are outright fronting. The B-BBEE Codes award points in a complex way – voting rights are measured, economic interest and the outstanding debt at the end of each year is measured.
Many strategies are available:
- Sale of shares to employees via ESOPs
- Sale to broad-based ownership schemes
- Sale to investors
Each aspect has its benefits and drawbacks:
- Finance or lack of finance
- Amount of management control required
- Management ability
- Identifying and sourcing partners
- Heads of agreement
- Ownership structures
- Cost benefit analysis
- Valuation and due diligence
- Share and other agreements
- Trust accounting and management
- B-BBEE points impact analysis
We work with legal and accounting & auditing firms to ensure competencies in all areas.
- Initial briefing and sign confidentiality agreement.
- Analyse business activities and requirements for an ownership deal
- Present our recommendations and obtain mandate
- If necessary:
- Seek potential partners
- Value company
- Due diligence
- Sourcing partners. Identify, set up proposal and approach:
- Broad-based ownership schemes
- Financing structures
- Draw up shareholders/trust agreements
- Implement the sale and management of the shareholding scheme thereafter