The Special Purpose Acquisition Company (SPAC) will be established to buy a current company with a proven track record that has the potential to grow its turnover into its net profit within four years.
Which Company will Qualify?
The ideal company will have a selling price between R 6 mil and R 15 mil, with the following criteria for the company:
- Employers in South Africa
- Employees in South Arica
- Labour intensive industry – Manufacturing, mining or construction
- Low skill, manual labour force
- Older than six years
- Profitable in the last three years
- The demand for the product exceeds the current and future internal supply capacity
- The truly variable cost of the products supplied to the market is between 50 and 70 %
- The company’s employees are reliable and open to an Employee Share Ownership Programme.