African companies must recognise strategic M&A as the most viable exit strategy, says investment bank CEO
Founders can prepare diligently for M&A exits by identifying the right pools of buyers, stress-testing business plans and clearly defining value propositions
Impacted by global economic issues and geopolitical tensions, African companies have faced a challenging 12 months in terms of VC-backed activity. However, for any founders considering their best route to a profitable exit, one option has emerged as the obvious choice: acquisition.
This trend is highlighted by Pitchbook data evaluating the African VC ecosystem in Q1 2024, which revealed that of all the exits achieved across the period, each and every one was secured via acquisition. In contrast, no public listing or buyout deals were completed.
According to Victor Basta, CEO and Founder of investment bank DAI Magister, African ...