Designed to give you a quick yet robust view as to whether having the right level of BEE ownership in place would be worthwhile for your business.
Each ownership attribute stacks to increase your Preferential Procurement value to customers. The more criteria you meet, the more points per rand of spend you're worth.
To understand the value of doing a BEE ownership deal, we need to look at it from your customers' perspective.
Your customers buy from you because of a variety of factors including quality, service, price, and historic relationships. But since their BEE scorecard requires them to spend 80% of their Total Measured Procurement Spend ("TMPS") with Empowering Suppliers, they need to make every rand of spend count towards their score. Offering them more BEE points per rand of spend is a very effective way of winning — and keeping — business.
Our analysis below shows how many Preferential Procurement points you offer clients per 1% of their TMPS today, compared to what a Tusker 51% deal delivers under the current codes, and what a Tusker 100% deal delivers under the proposed codes.
| Criterion | Target under current codes | Your position | You now | Tusker 51% deal |
|---|
| Criterion | Target under proposed codes | Your position | You now | Tusker 100% deal |
|---|
* Proposed codes are under consultation and have not yet been gazetted. Points allocations and TMPS targets differ from the 2015 codes.
Most of our clients look to solve their BEE ownership problem when they realise how much business they’re losing. To understand this, we need to know the % of your revenues from BEE-sensitive customers, and how much they’re reducing wallet-share as a result.
⚠ NB: most clients underestimate the negative impact not having the right BEE credentials has on their business.
As shown in Step 3, a Tusker 51% ownership structure makes you — more attractive to customers in Preferential Procurement points per 1% of TMPS. Getting ownership right is your most powerful commercial lever — use the sliders below to size the opportunity.
Beyond winning more sales, the right ownership structure can materially reduce your cost of capital and transform the value you unlock when you exit.
Consider two identical businesses operating in South Africa. One is white-owned, one is 100% black-owned. Thanks to Tusker’s unique structure, when you sell your business a buyer of any race or nationality can acquire it — and it remains permanently black-owned. This perpetual BEE compliance commands a significant premium in the market.
You currently offer your clients — points per 1% of TMPS.
A Tusker 51% deal can help you achieve — points — —.
If the proposed codes come into play, with their strong emphasis on 100% black ownership, Tusker can offer you — points per 1% of TMPS — — in your attractiveness to customers.
Delaying your BEE ownership deal is costing you an estimated — per year in lost and eroding revenue.
Year 1 sales uplift: —
5-year working capital savings: —
Estimated valuation lift on exit: —
Tusker.co.za helps businesses operating in South Africa achieve full compliance with BEE ownership scorecards. Our approach is suitable for any business where corporate ownership is allowed (sorry Legal profession — we can't help).
We have operated for 9 years. No client has ever left us. We manage over R1.5bn of BEE equity for our clients.
Enter your details below and a Tusker advisor will review your numbers and present a tailored ownership structure proposal — at no cost or obligation.