Andre Bresler Featured in Selling a Stake in Your Business

Selling a part of your business is more than achieving the highest valuation. A good exit strategy should consider timing, deal terms, personal wealth, growth, and the right buyer or partner.

Andre Bresler, Managing Partner of Benchmark International in South Africa, recently joined Rob Rose and Stanley Broun for a webinar on what business owners should consider when selling part of their business.

Whether discussing exits, value, succession, choosing the right partner, or making a deal successful, the conversation covers it all.

Key Highlights

• Partial exits offer flexibility: Owners can realize some of their wealth while retaining equity and participating in future growth.
• Know your objectives: Financial security, growth, succession, and bringing in a strategic partner can influence the right transaction.
• Look beyond valuation: Governance, earnouts, liability, and future exit rights can affect the value.
• Understand what buyers value: Market feedback from potential buyers can clarify how the market views your business.
• Choose the right partner: The right investor can bring capital, expertise, and strategic support to accelerate growth.
• Think long-term: A successful deal should support the owner’s goals, the business’s future, and family wealth and succession.

Gain Insight into Your Company’s Current Market Value

Why Partial Exits Are Becoming More Popular

Benchmark International sees more entrepreneurs considering partial business exits than a decade ago.

For many founders, their business is not just a valuable asset but also their life’s work. Selling part of the business can provide liquidity and reduce personal financial risk without exiting the business entirely.

As Andre explained, “I love the notion of having a partner.”

A partial sale can involve bringing in a partner who will help grow the business with capital and expertise. The question is not how much of the business to sell, but why the entrepreneur wants to pursue the transaction in the first place.

Look Beyond the Business Valuation

When selling a business, valuation is only one part of the deal.

Governance rights, earnouts, warranties, liabilities, and future share sales can all greatly affect the seller’s final outcome.

As Andre noted, “The top-line number is not the number that’s important. It’s the bottom-line number.”

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Two offers with similar valuations in terms of headline figures can lead to very different outcomes. The deal structure can affect what the owner receives and how the money supports their financial and succession plans.

Understand What the Market Values

Business owners often rely on theoretical valuations to understand their business's value. Andre also emphasized the importance of getting a real market perspective. As he put it, “Theoretical valuations are just that. They’re theoretical.”

Knowing what buyers value can help owners make better decisions, whether they sell or not. Talking to potential buyers can also help owners understand the business’s value, risks, and strengths. This can help owners make better decisions, whether they sell or keep growing the business.

Choosing the Right Partner

A deal's value goes beyond the price offered. The right buyer or investor can make all the difference going forward. A strategic or financial partner can bring the capital, know-how, and network needed to help the firm grow to the next level.

If the entrepreneur is keeping a stake in the firm, the partnership becomes even more critical. Both parties need a shared understanding of the company’s direction, governance, and long-term objectives.

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What Does a Successful Transaction Look Like

A successful transaction should not be measured only by the valuation achieved on closing day.

Questions to consider: Has the owner diversified their wealth? Has the business grown? Has management developed? Has the partnership created new opportunities?

As Andre explained, “A successful transaction isn’t necessarily the one where the seller gets the highest valuation. It’s one where 5 years down the road, the owner says, ‘That helped me achieve what mattered.’”

Ultimately, the right transaction creates value beyond the deal itself.

Where to Watch

Watch the full Financial Mail and Sanlam Private Wealth webinar, featuring Andre Bresler of Benchmark International and Stanley Broun of Sanlam Private Wealth, hosted by Rob Rose.

Interested in more insights? Explore more webinars here.

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