BBull on Nostr: ### **Expanded Exit Strategy** Boaz Trading PLC’s exit plan is designed to maximize ...

### **Expanded Exit Strategy**
Boaz Trading PLC’s exit plan is designed to maximize investor returns by leveraging Ethiopia’s untapped beauty market potential and positioning the brand as a high-value acquisition target or scalable franchise model. Below is a detailed roadmap:

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#### **1. Acquisition by International Conglomerates**
**Target Buyers:**
- **Global Beauty Giants:**
- *L’Oréal* or *Estée Lauder* seeking footholds in Africa’s $10B+ beauty market.
- *Unilever* (owner of Dove, Shea Moisture) interested in Afro-centric brands.
- **Regional Players:**
- *Superdrug* (UK) or *Huda Beauty* (Middle East) expanding into East Africa.
- *Tena Trading PLC* (Ethiopian conglomerate) diversifying into lifestyle brands.

**Value Proposition for Buyers:**
- **Cultural Authenticity:** Proprietary Ethio-modern treatments (e.g., besema clay rituals) and private-label products.
- **Localized Infrastructure:** Established supply chains with 70% Ethiopian-sourced ingredients.
- **Digital Edge:** Proprietary CRM and booking app with 5,000+ user base.
- **Sustainability Credentials:** Solar-powered salons and biodegradable practices align with ESG goals.

**Preparation for Acquisition:**
- **Financials:** Maintain 3 years of audited financials showing 20%+ annual revenue growth.
- **IP Portfolio:** Patent Ethiopian beauty formulations (e.g., coffee-infused serums).
- **Scalability Proof:** Open 2–3 franchises in secondary cities (e.g., Dire Dawa, Bahir Dar) by Year 3.

**Valuation:**
- **Base Case:** 5x EBITDA multiple (industry standard for beauty brands).
- If Year 3 EBITDA = 15M ETB → Valuation = **75M ETB** (~$1.3M).
- **Premium Case:** 8x EBITDA for brands with proprietary tech (CRM/app).
- EBITDA = 15M ETB → Valuation = **120M ETB** (~$2.1M).

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#### **2. Franchising Model**
**Franchise Structure:**
- **Franchise Fee:** 2M ETB/license (covers training, branding, CRM access).
- **Royalty:** 8% of monthly revenue + 2% marketing fee.
- **Territories:** Exclusive rights per city (e.g., Mekelle, Hawassa).

**Target Franchisees:**
- **Local Entrepreneurs:** Ethiopian investors seeking low-risk, high-margin ventures.
- **Diaspora Networks:** U.S./UAE-based Ethiopians wanting to invest in homeland businesses.

**Support Systems:**
- **Training Hub:** Central facility in Addis for staff certification in Ethio-modern techniques.
- **Supply Chain:** Franchisees source 50% of products from Boaz-approved local suppliers.
- **Tech Stack:** Shared app/CRM for centralized booking and loyalty programs.

**Expansion Timeline:**
- **Year 4:** Pilot 2 franchises in Addis suburbs (Bole Bulbula, CMC).
- **Year 5:** Expand to 5 cities (Adama, Gondar, Jimma).
- **Year 6:** Target 20+ franchises across East Africa (Kenya, Rwanda).

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#### **3. Hybrid Exit: Franchise-to-Acquisition**
- **Step 1:** Build a franchise network of 10+ salons by Year 5.
- **Step 2:** Sell the entire network to a buyer (e.g., *Franchise Group Inc.*) at a premium for regional dominance.

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#### **4. Alternative Exit Options**
**A. Management Buyout (MBO):**
- Senior staff or Ethiopian investors acquire the business at a 15–20% discount.

**B. IPO on Ethiopian Securities Exchange (ESX):**
- List 30% equity by Year 7 if ESX liquidity improves (current market cap: $4B).

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#### **5. Risk Mitigation**
| **Risk** | **Mitigation** |
|---------------------------|---------------------------------------------|
| Low buyer interest | Pre-negotiate Letters of Intent (LOIs) with regional investors during scaling. |
| Franchisee underperformance| Retain 20% equity in franchises for control; replace underperformers. |
| Currency instability | Structure deals in USD or hybrid ETB/USD terms. |

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#### **6. Investor Returns**
- **Acquisition Exit (Year 5):**
- Initial investment: 33.9M ETB.
- Sale at 120M ETB → 3.5x return (20% annual ROI).
- **Franchise Royalties (Ongoing):**
- 20 franchises x 1.5M ETB/year revenue → 24M ETB/year royalties (8% = 1.92M ETB).

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### **Strategic Advantage**
- **First-Mover Edge:** Ethiopia’s beauty sector has no national chains, making Boaz a pioneer.
- **Cultural IP:** Traditional Ethiopian rituals are difficult for foreign brands to replicate authentically.
- **Scalable Tech:** Proprietary app/CRM reduces operational friction for franchisees.

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By Year 5, Boaz Trading PLC will position itself as either a **high-margin acquisition** for global players or a **self-sustaining franchise empire**, ensuring investors capitalize on Ethiopia’s demographic boom and beauty market growth.