Four out of five black economic empowerment (BEE) deals will probably not meet the requirements of the final draft of the ICT charter.
This is according to Brian Rainier, MD of Brainier Capital and Consulting. The final draft requires ICT companies to introduce 30% black equity shareholders.
"There are substantial changes around the treatment of ownership in the last few drafts of the ICT charter, and these need clarification. BEE deals can be really complicated, and they can be really simple. There are a number of ways in which they can and should be structured, and companies entering into negotiations need to understand these so as to reach a win-win situation," says Rainier.
The company will present an interactive workshop in Johannesburg on 14 June, aimed at assisting delegates to evaluate their businesses so as to correctly structure the required equity deals.
"This workshop will deal with structuring and success issues in detail. Companies need to understand that valuation of the companies involved, or who is paying what upfront, is often not as important as the terms of the deal and how these will impact on the business in the future."
It will also cover where funding can be obtained. "There`s a huge amount of uncertainty here, and many people are either not aware of funding opportunities or else need help on how to apply for this funding."
Rainier will also offer one-on-one sessions at participating delegates` companies. Click here for more information on this event.
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