11 things to consider before implementing an ESOP
October 8, 2024
Our Country Entry Clients
Strategic BEE and Competition Commission support
Whether you are buying or selling a South African company or are a new entrant to South Africa, we specialise in guiding you and your advisors through evaluating your target’s BEE robustness to build an integrated BEE and Competition Commission public interest strategy that reduces unforeseen BEE risks.
Buy-side BEE due diligence on targeted companies
We assist buyers understand the BEE risks and opportunities in targeted businesses to negotiate appropriate warranties and be prepared for Competition Commission public interest requirements:
- Advise buyers on Competition Commission public interest considerations, sharing current best practice.
- Perform due diligence on the current BEE ownership structure.
- Evaluate the robustness of the targeted company's BEE scorecard, including fronting risk.
- Provide ownership strategic option analysis to replace existing BEE shareholding.
- Advise on BEE compliance, costs and sustainability post-acquisition.
Sell-side BEE advisory
We assist sellers to prepare a comprehensive BEE solution and strategy pack that will meet the needs of potential buyers to ensure a smooth M&A process and reduce BEE penalties in the sale prices through providing the following services:
- Assist in developing and setting up a bundled Competition Commission public interest proposal.
- Ownership strategic option analysis to sustain or enhance existing BEE shareholding.
- ESOP analysis to evaluate public interest cost impact.
Competition Commission advisory services
Transcend Capital provides the following Competition Commission advisory services:
- Advise on the Competition Commission's current public interest requirements for country entry.
- Train M&A teams on Competition Commission public interest requirements and practical options.
- Quantify the current BEE initiatives and assist in scoping and costing a bundled proposal for Competition Commission.
- Evaluate Black ownership (different from BEE scorecard ownership) for Competition Commission compliance.
- Provide expert BEE ownership advice and structuring for submission to the Competition Commission.
- Offer specialist ESOP advisory services.
Enterprise and Supplier Development fund set-up
Transcend Capital assists with the following ESD Fund set-up:
- Assist companies in designing and implementing Enterprise and Supplier Development (ESD) and education funds.
- Share best practice fund structures.
- Ensure that the fund aligns to supply chain and business goals.
- Assist with sourcing long-term partners.
- Sourcing and evaluating ESD and fund services providers.
