Aan die Direkteure van Jenlu Plaas,
Ek wil graag ‘n voorstel maak om ‘n due diligence-periode van 36 maande aan te gaan. Gedurende hierdie tydperk wil ek ‘n besigheid registreer wat as GroFresh Komkommers sal handel en al die voorraad van die komkommerplaas deur hierdie besigheid verkoop. Alle inkomste en uitgawes moet deur hierdie besigheid loop. Ek sal al die komkommers deur hierdie besigheid verkoop, óf op leweringskontrakte óf direk aan die boeregemark in Johannesburg.
Noukeurige boekhoudingsrekords moet vir die 36-maande periode gehou word. Betaling vir die eiendom sal in 3 fases plaasvind na elke 12 maande wat verloop. By betaling sal aandele in ruil vir kontantbetaling oorgedra word. ‘n Betaling gelykstaande aan 33.33% van die wins sal aan die aandeelhouers van hierdie besigheid betaal word.
Aanvanklik sal Jenlu 100% aandele in die besigheid hou en na 12 maande sal 33.33% van die winsvoorspelling vir 5 jaar aan Jenlu betaal word en 33.33% van die besigheidsaandele aan GroSpace oorgedra word. Jenlu sal al die wins vir die eerste 12 maande van die handelsperiode behou.
Na 24 maande na die begin van hierdie periode sal 33.33% van die voorspelde wins vir 5 jaar aan Jenlu betaal word, en ‘n verdere 33.33% aandeel sal aan GroSpace oorgedra word. Na 36 maande sal ‘n verdere 33.34% van die voorspelde wins vir 5 jaar aan Jenlu betaal word en die oorblywende 33.34% aandeel sal aan GroSpace oorgedra word.
Tydens hierdie due diligence-periode sal die standaard bedryfspraktyke noukeurig gevolg word en die Standaard Bedryfsprosedure (SBP) sal as deel van die oordragbestuursproses gedokumenteer word. ‘n SBP is ‘n dokument wat stap-vir-stap aanwysings bevat om werknemers te lei oor hoe om ‘n tegniese, herhalende proses binne ‘n organisasie uit te voer.
Alle logistiek sal deur GroSpace bestuur word, en komkommers wat van die plaas verkoop word, sal teen plaashekpryse verkoop word. Dit sal die las vir Jenlu se besigheid verminder. Alle sertifiseringseise, insluitend, maar nie beperk tot, Global GAP, moet voorberei word, saam met instandhoudingsskedules, kwaliteitsbeheerprosedures en verpakkingsprosedures wat sistematies gedokumenteer moet word. Ondergrondse pypwerk moet in kaart gebring en gedokumenteer word. ‘n Elektriese sertifikaat moet in stand gehou word. Waterlisensies en ooreenkomste vir die voorsiening van water van die munisipaliteit of naburige plase moet gedokumenteer en oorgedra word na die besigheid. Boorgat-plekke met gedetailleerde inligting oor elke boorgat moet gedokumenteer word. Strukture moet geëvalueer word, en ‘n maandelikse SWOT-analise moet uitgevoer word.
Gedurende die eerste 12 maande van hierdie due diligence-periode sal ‘n volhoubaarheidsprogram ontwerp en geïmplementeer word om energieverbruik te bewaar en te verminder. ‘n Biogasfasiliteit sal ontwikkel word om die bio-afval te benut. Die neweproduk van hierdie proses is ‘n ryk vloeibare kunsmis, wat gebruik sal word om die plante te voed. Die biogas sal saamgedruk en gestoor word vir gebruik in gasverwarmingstelsels om die polistunnels te verhit. Die sisteem sal in grootte verdubbel word om produksie te verdubbel.
As Jenlu verkies om na ‘n 12-maande oordragsperiode te verkoop, moet al die bogenoemde voltooi wees en aan alle vereistes voldoen word. Sonder hierdie vereistes sal Jenlu sukkel om die plaas aan enige ernstige kopers te verkoop. Tans is die rentekoerse hoog as gevolg van die markdepressie. GroSpace is oortuig dat sonder hierdie vereistes, sal private kapitaal geen belangstelling hê om te belê nie. GroConsult sal ‘n bekwame konsultant stuur om saam met die huidige bestuur effektief aan hierdie vereistes te voldoen.
Indien die uitbreidingsplan tesame met die volhoubaarheidsplan gedurende die 12-maande due diligence-periode werklikheid word, sal dit die waardasie van die besigheid aansienlik verhoog en aansienlike opbrengste vir Jenlu na die verkoop genereer. GroSpace het reeds ‘n welgestelde swart vrou gereël om die besigheid met ‘n lopende saak te koop. Sonder ‘n formele struktuur stel die verkoop egter ‘n hoë risiko vir belegging en GroSpace adviseer tans teen belegging. Met die bogenoemde vereistes kan hierdie eiendom gerus R17.5 miljoen behaal, wat die aanbod op tafel is. Sonder hierdie vereistes kan ‘n
voorlopige aanbod van R6.6 miljoen oorweeg word vir die grond. Volgens ons konsultant Roland Claven, wat die plaas vir net minder as 2 uur besoek het, is daar geen lopende saak nie, en die eiendom word verkoop uit ‘n besigheid wat bevredigend is vir belastingdoeleindes, maar dit sal nie verstandig wees van ons kant om ons goedkeuring op ‘n eiendom te plaas sonder die volgende van beide die wettige en professionele protokol nie. Sonder die bogenoemde vereistes sal hierdie eiendom ‘n moeilike verkoop wees teen R17 miljoen.
Ons sien daarna uit om hierdie voorstel verder te bespreek en saam te werk om u boerderyonderneming op ‘n suksesvolle pad te neem.
Hoë agting,
Roland A. Claven
Founder and CEO
GroSpace
English
To the Directors of Jenlu Farm,
I would like to propose entering a due diligence period of 36 months. During this time, I plan to register a business trading as GroFresh Cucumbers and sell all of the stock from the cucumber farm through this business. All income and expenses will be channeled through this business. I will sell all of the cucumbers through GroFresh either on supply contracts or directly to the farmers’ market in Johannesburg. Accurate accounting records need to be kept for the entire 36-month period.
Payment for the property will be made in 3 stages, after every 12 months that pass. Upon each payment, shares will be exchanged for cash. A payment equivalent to 33.33% of the profits will be paid to the shareholders of this business.
Initially, Jenlu will hold 100% of the shares in the business, and after 12 months, 33.33% of the profit forecast for 5 years will be paid to Jenlu, and 33.33% of the business shares will be transferred to GroSpace. Jenlu will retain all profits for the first 12 months of trading.
After 24 months from the start of this period, an additional 33.33% of the forecasted profits for 5 years will be paid to Jenlu, and a further 33.33% shareholding will be handed over to GroSpace. After 36 months, a final 33.34% of the forecasted profits for 5 years will be paid to Jenlu, and the remaining 33.34% shares will be transferred to GroSpace.
During this due diligence period, the standard operating practices will be followed meticulously, and the Standard Operating Procedure (SOP) will be documented as part of the handover management process. An SOP is a document containing step-by-step instructions to guide employees on how to perform a technical, repetitive process within an organization.
All logistics will be managed by GroSpace, and cucumbers sold from the farm will be sold at farm gate prices. This will ease the burden for Jenlu’s business. All certification requirements, including but not limited to Global GAP, should be prepared, along with maintenance schedules, quality control procedures, and packing procedures systematically documented. Underground piping should be mapped and documented, and an electrical certificate should be maintained. Water licenses and agreements for the supply of water from the council or neighboring farms should be documented and transferred to the business. Borehole locations with detailed information about each borehole should be documented. Structures should be evaluated, and a monthly SWOT analysis should be performed.
During the first 12 months of this due diligence period, a sustainability program will be designed and implemented to conserve and save on energy consumption. A biogas facility will be developed to harness the bio waste produced. The byproduct of this process is a rich liquid fertilizer, which will be used to feed the plants. The biogas will be compressed and stored for use in gas heating systems to heat the poly tunnels. The system will be doubled in size to double production.
If Jenlu chooses to exit after a 12-month handover period, all of the above should be completed and all requirements met. Without these requirements, Jenlu will struggle to sell the farm to any serious buyers. Currently, interest rates are high due to the market depression. GroSpace is confident that without these requirements, private capital will have no interest in investing. GroConsult will send a skilled consultant to work side by side with current management to efficiently complete these requirements.
Should the expansion plan, along with the sustainability plan, come to fruition during the 12-month due diligence period, this will significantly increase the valuation of the business and generate significant returns for Jenlu upon sale. GroSpace has already lined up an affluent black female to purchase the business with a going concern. However, without a formal structure, the sale poses a high risk for investment, and GroSpace currently advises against investment. With the requirements described above, this property could comfortably fetch R17.5 million, which is the offer on the table. Without these requirements, a tentative offer of R6.6 million may be considered for the land. There is no going concern, and the property is being sold as a farm, which is satisfactory for capital gains taxation purposes. However, it will not be prudent on our behalf to place our signature of approval onto a property without following both legal and professional protocol. Without the requirements mentioned above, this property will be a difficult sell at R17 million.
We look forward to further discussing this proposal and working together to set your farming operation on a successful path.
Yours sincerely,
Roland A. Claven
Founder and CEO
GroSpace
