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BEE Transaction Implementation

Multinational Feasibility

Solutions that help you succeed and grow in South Africa

We specialise in assisting multinational companies to understand the available BEE Ownership options in the context of BEE legislation and the socio-political environment, and ultimately identify and implement the optimal solution that will enable growth in South Africa.

Optimal Group Structuring

Many South African companies that need empowerment fit within a group entity – very often the sub-Saharan African business. When designing a BEE Ownership strategy, it is important to take such group structures into account to allow the business to grow in South Africa and Africa.

Transcend Capital understands the relevant aspects of BEE legislation and Codes that come into play when optimising group structures. We also have experience in assisting major multinationals with related strategy design.

  • Address Customer Needs 100%
  • Make Business Sense 100%
Our understanding of the aspects of BEE legislation and Codes that come into play when optimising group structures, together with our experience in assisting major multinationals with related strategy design enables us to help you identify your optimal group structure.

Strategic BEE Partner Selection

Finding a strategic partner who is a good match for your business

South Africa is entering a new phase in transforming the ownership of companies. Companies are realising that to be relevant in South Africa today they need to have value-adding Black shareholders. This realisation is driven strongly by:

  • Preferential Procurement points being weighted towards procuring from 51% Black-Owned companies
  • through state-owned enterprises’ procurement policies
  • skilled and experienced Black investors stepping up to the challenges and opportunities

Increasingly companies are looking for partners with real business experience to help them be more relevant in South Africa through maintaining existing and growing new markets while driving transformation.

Increasingly, companies are looking for partners with real business experience to help them be more relevant in South Africa through:

  • business development in maintaining existing market and growing new markets
  • driving transformation in the business starting with the senior leadership
As part of our turnkey implementation, we help you:
  • Identify what you need in a BEE partner, as well as the optimal BEE Ownership composition
  • Identify transaction structures and arrive at an optimal ownership solution
  • Through our extensive source of potential partners, identify, select, and engage with strategic partners who are a good match for your business
  • Investigate strategic investor competence and capacity
  • Perform top-level differentiation, and ultimately shortlist based on expected value-add as well as scorecard impact in line with what you need
  • Assess partner risk through anti-bribery and corruption risk assessment
  • Enter into negotiations with the preferred partner(s), and manage the implementation of your transaction to conclusion, and
  • Raise IDC, PIC or third-party finance

Sale of Assets

The BEE Codes enable BEE Ownership credit for any sale of assets to Black investors.  This may be facilitated through the dti’s Black Industrialists Program (BIP) – a major creator of Black-owned and operated businesses that are at least 51% Black-owned.

We can assist you in:

  • Identifying assets that can be sold
  • Structuring a BEE compliant Sale of Asset solution
  • Modelling the BEE ownership credits
  • Identifying qualified Black buyers
  • Understanding the dti Black Industrialist incentives and funding
  • Drafting, negotiating and concluding relevant legal agreements
  • Working with your BEE verification agency to achieve successful verification

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Black-Owned

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Equity Equivalent Programmes

The Equity Equivalent Programme allows eligible multinationals to recognise BEE Ownership without diluting existing investor shareholdings. Designing and receiving governmental approval for an Equity Equivalent Programme can, however, be costly, lengthy, and complex. Success requires experience in dealing with key stakeholders, including the dti, as well as detailed technical knowledge of the process.

Transcend Capital provides you with the expertise you need to design and implement an Equity Equivalent Programme.

We help you to:

  • Assess feasibility
  • Understand the implementation path
  • Design a comprehensive Equity Equivalent Programme
  • Value your business
  • Engage with and garner support from internal and external stakeholders
  • Seek the necessary governmental approvals at various phases

Employee Share Ownership Plan (ESOP)

Employee Share Ownership Plans (ESOPs) can address BEE Ownership, while aligning employees with the business’s success.  A well-structured and executed employee ownership plan can improve business performance and strengthen labour relations.
A critical and challenging part of executing an ESOP is managing employee expectations. South Africa’s linguistic and cultural diversity means it is important to communicate an ESOP to beneficiaries in a way that they understand. Transcend Capital provides full turnkey employee ownership solutions – from scheme design, to legal implementation and employee engagement and communication.
Over the last decade, we have advised on and implemented a multitude of ESOPs for a wide range of businesses, providing us with invaluable experience and a deep understanding of the process.  In addition to considering the impact to the employee, we structure your ESOP taking BEE Ownership, tax, accounting, flexibility, valuation, and governance into account. We also offer the expertise you need to design and implement an ESOP-specific communication strategy.
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Employee Share Ownership Plan (ESOP) Communication

Manage your employees’ expectations with full turnkey ESOP Communication

ESOPs align employee and management interests through structured ownership. They also enable BEE Ownership recognition and can improve business performance and strengthen labour relations.

But even the most promising employee ownership initiatives fail without employee ‘buy-in’. Managing employee expectations through effective communication is the single most important aspect of any ESOP implementation.

Transcend Capital is unique because we provide full turnkey employee ownership solutions. We have advised on and implemented a multitude of ESOPs. Our understanding of the process is deep and supported by our knowledge of South Africa’s linguistic and cultural diversity.

Transcend Capital has successfully assisted various multi-nationals navigate this complex arena through careful planning and focused execution of bespoke ESOP communication programmes. Let us help you too.

With this expertise, we create an optimal communication programme for the business that uses:

  • Simplified legal and structuring language
  • Explanatory booklets, posters, letters, and videos
  • Direct communication from executive team to employees
  • Interactive question and answer sessions with employees

Broad-Based Ownership Schemes

Broad-based Ownership Schemes help people who need it most – at a grassroots level. In doing so, your initiative enables BEE Ownership recognition and makes a real difference.
It is important to take your desired level of BEE Ownership into account, and, where relevant, strike the right balance between active and passive Black ownership. Over the last decade, Transcend Capital has advised on and implemented a multitude of broad-based ownership schemes for a wide range of businesses, providing us with invaluable experience and a deep understanding of the process.
In addition to considering BEE Ownership impact, we structure your broad-based ownership scheme taking tax, accounting, flexibility, valuation, and governance into account.
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