Entries by tusker-admin

Why now is the best time to do a BEE deal

The business environment isn’t pretty: South African economic growth is flat or negative, the political climate is turbulent, the fat cats of state capture still live the high-life, and a ratings agency downgrade looms. It may seem all doom and gloom, but there is an upside. A real, significant upside that favours the stayers, the […]

Part 11 – What makes BEE deals especially difficult?

To understand the ideal BEE deal we need to remove all the reasons why BEE deals currently suck.  Why BEE deals <can> suck: Inexperienced transactors: For all of the reasons previously described, buying and selling shares in private capital markets is complicated and risky. Many of the lessons can only be learned through experience (as […]

Part 10 – Transferring ownership in private capital markets is tough

Before we discuss the various ways of structuring BEE ownership deals, it’s worth looking at why deals suck. This article discusses the generic problems of transacting in private-capital markets (which covers 99.99% of the SA economy); the next article discusses BEE related issues in addition to these private-capital market problems. Transacting in private-capital markets is […]

Learn how to use BEE as a strategic advantage:

Want to learn how to make BEE into a strategic advantage? You’re not alone: we’ve been asked many times if we’d share our experience in finance and BEE to help business owners and their advisors better understand how to make BEE into a strategic advantage. So we’re planning a series of 1-day workshops in the […]

How to get out of a BEE deal

Relationships end with death or divorce. Legal fees and taxes are certain: Many relationships sour, once the excitement of the courting is over and the realization of the limitations of the partnership sets in.  Sometimes this turns ugly (or the partner does?) and ends in litigation, often highly emotionally charged and sometimes just plain vengeant.  […]

How the NCA sinks vendor-financed deals

This may be one of the more NB articles we’ve written. No kidding. The most common method used to finance BEE might just become spectacularly unstuck thanks to the NCA (National Credit Act) and a whole bunch of money owed to ‘white’ sellers of shares may be unenforceable. Read on, and expect a flurry of […]

How the Government shoots BEE in the foot

Tusker is a BEE private-equity fund and our articles inevitably illicit quite a lot of reaction – much of it’s against BEE, and especially the perceived link between BEE and corruption (the extent of which understandably draws angry responses from fed up South Africans, especially in the business community). To be clear, Tusker believes in […]

Is BEE a farce?

Is BEE really a farce, or is that just ego speaking? Dr. Iqbal Surve (chairman and shareholder of Sekunjalo which in turn owns Independent Media) has been appearing before the Mpati Commission of Inquiry which is looking to the affairs of the Public Investment Corporation or PIC. In his testimony before the Commission Dr. Surve […]

BEE fronting – what it is, the risks, and what to do about it:

There has been a lot of recent publicity around BEE fronting and the B-BBEE Commission devoted much of its recent annual conference on BEE ownership to this very important topic. Fronting and BEE ownership can easily overlap. At the 2019 B-BBEE Ownership conference the Minister of Trade and Industry (under whose ministry the B-BBEE Commission […]