Frequently asked questions
The questions owners ask us first.
Straight answers to the things most people want to know before they pick up the phone.
What kind of businesses do you buy?
Established South African businesses with a track record of five years or more, annual profit before tax of roughly R4 million to R12 million, good margins, and a simple model in a down-to-earth industry. We're flexible on size for the right business. If you're unsure whether you fit, ask us.
How are you different from private equity?
Private equity funds buy to sell, usually within a few years. We buy to hold. Pace Capital is built on permanent capital with no fund life, so we never need to sell the businesses we own. We are owners first, and the business you built is treated as something to be kept, not flipped.
What happens to my staff?
They stay. Your team is a large part of what we are buying, and continuity for them is continuity for your customers. We don't restructure for the sake of it and we don't move businesses elsewhere.
Will my business keep its name?
Yes. The name, the brand and the reputation you built carry on. Businesses we own keep their own identity.
Do I have to stay on after the sale?
No. Some owners want a clean break, some want a handover period, and some want to stay involved in a role they enjoy for years. All three work for us. We'll build the plan around what you want.
Can I sell only part of my business?
Yes. Many owners prefer to sell a share now, take some reward for what they've built, and work towards a complete exit over time. We are comfortable with a phased approach and with a full sale.
How do you value a business?
On what it earns, how reliably it earns it, and how well it runs without the owner. We look at sustainable profit, margins, customer relationships and the strength of the team. We show our working, and our aim is a price that is fair to you and sustainable for the business. The valuation tool on this site gives you a confidential first indication.
Will my customers and suppliers find out?
Not from us. Every conversation is confidential, and nothing is shared with anyone outside Pace without your agreement. Customers and suppliers are told when you decide they should be, usually once a deal is agreed and a transition plan is in place.
Who will run the business after me?
A strong operator with a stake in its success. That may be someone already in your business, someone you have in mind, or an experienced leader we bring in and back. Working out who is part of our first conversations with you.
Do you ever sell the businesses you buy?
We don't buy with any intention of selling. Our capital is permanent, and we go into every acquisition with a forever mindset.
I'm not ready yet. Should I still talk to you?
Yes. The best exits are planned two or three years ahead. An early, no-obligation conversation helps you understand what your business is worth today and what would make it worth more. There's no pressure to do anything.
Do I need a broker or adviser?
Not to talk to us. Many owners deal with us directly, and we're used to working with accountants and attorneys when it comes to the detail. If you already have a broker, we're happy to work with them too.