Exit Strategy: Optimizing Valuation by Managing BEE Scorecard
Exit Strategy: Optimizing Valuation by Managing BEE Scorecard
How does actively improving a business's BEE scorecard in the years leading up to a sale impact its final valuation and attractiveness to buyers?
2 Answers
Actively improving a business’s BEE scorecard enhances its reputation, compliance, and social responsibility, which can increase valuation and make it more attractive to buyers seeking well-governed, risk‑aware investments.
Actively improving a business’s BEE scorecard before a sale can feel like planting seeds for a future reward and it really pays off. A stronger BEE rating makes the company more attractive to a wider pool of buyers, especially corporates and investors who must meet their own compliance targets, and can boost the final valuation because it signals better governance, skills development, and supplier relationships. Buyers often see a high score as reducing risk and adding strategic value, so putting in the work early not only strengthens your business but can also make the sale feel more like a win than a negotiation battle.