Investing in CompAlliance

CompAlliance is an established enterprise technology consultancy with a reference-grade client book spanning financial services, manufacturing, logistics, healthcare, and the public sector. It operates across three tightly-related disciplines — app engineering, systems integration, and enterprise strategy — that together form a single, defensible service line: designing the connective tissue of complex organisations.

The business is profitable, asset-light, and delivered predominantly through senior consultants with subcontracted specialist capacity, producing a blended gross margin of ~62%. The acquisition includes the trading business, its client relationships, its delivery methodology, and the www.compalliance.co.za digital platform — a live lead-generation and intake engine that converts visitor traffic into qualified project inquiries.

This memorandum offers two investment tiers into a business valued at R1.2m: R200,000 for a 20% share or R500,000 for a 50% share. The funds seed the productisation of the managed-integration retainer and scale the delivery bench. Projections show revenue growing from R1.8m to R2.6m over three years, with EBITDA expanding from R0.50m to R0.85m and margin lifting from 28% to 33% as a recurring retainer layer is layered onto the project business.

CompAlliance delivers three integrated service pillars, each reinforcing the others:

• App Engineering — mobile, web, and enterprise applications engineered around the client's operating model.
• Systems Integration — API architecture, data orchestration, and automation that turn fragmented tools into one system.
• Enterprise Strategy — technology audits, operating-model design, and transformation roadmaps.

The investment secures a proportional share of: (i) the trading entity and its contracts; (ii) the brand, methodology, and intellectual property; (iii) the live digital platform at www.compalliance.co.za, including its automated project-intake workflow and enquiry database; and (iv) transition support from the founding principal under an earn-out.

Enterprise IT spend in CompAlliance's core geographies continues to shift from greenfield build toward integration, automation, and modernisation — precisely the work where the business is strongest. Three forces underwrite demand:

• Fragmentation debt — organisations carry years of disconnected SaaS and legacy tools and now need them to operate as one.
• Modernisation pressure — legacy platforms must be bridged, not ripped out, creating durable integration engagements.
• Strategy before spend — boards increasingly fund audits and roadmaps before approving large builds.

CompAlliance's reference book — Hollard, Samsung, DEDEAT, and others — demonstrates repeat access to mid-market and enterprise buyers with sustained integration budgets.

The acquisition is compelling on four grounds:

• Profitable from day one — the business generates positive EBITDA today; no turnaround is required.
• Defensible moat — deep client relationships and a methodology that is hard to replicate quickly.
• Recurring-revenue upside — a managed-integration retainer can be productised on top of the existing client base.
• Investment-ready platform — the live website already captures and qualifies inbound demand.

Revenue is earned through four streams, with a deliberate shift toward recurring income post-acquisition:

• Project engagements — fixed-scope app engineering and integration builds (the majority of current revenue).
• Strategy retainers — advisory and roadmap engagements billed monthly.
• Managed integration (new) — ongoing monitoring and maintenance of integration layers, the primary margin lever.
• Platform-derived leads — inbound inquiries from www.compalliance.co.za converted at low acquisition cost.

Three levers drive the projected 2.3× revenue growth over three years:

• Productise managed integration — convert one-off builds into multi-year retainers, lifting margin and predictability.
• Scale the delivery bench — add senior integration engineers and a delivery lead to increase concurrent engagements.
• Expand the reference book — pursue adjacent industries (logistics, healthcare) where the firm already has proof.

The table below sets out the illustrative three-year projection. All figures are in ZAR millions and are pre-tax.

Revenue CAGR over the forecast period is ~13.0%, with EBITDA CAGR of ~19.4% as the managed-integration retainer scales and operating costs deleverage.

The business is valued at R1.2m. Investors may enter at either of two tiers:

The R500,000 (50%) tier is deployed as follows (the R200,000 tier funds the platform and go-to-market lines proportionally):

On the projections above, each tier recovers its investment in roughly two years from its share of Year-0 EBITDA (20% ≈ R100,000/yr; 50% ≈ R250,000/yr), with further equity-value upside from margin expansion and the recurring-revenue multiple re-rating.

Three credible exit paths are available within a 4–6 year horizon:

• Trade sale to a larger systems integrator or consulting group seeking an enterprise-integration capability.
• Management buy-in / buy-out backed by the delivery lead retained post-acquisition.
• Recapitalisation once the recurring-revenue base is established, realising a partial exit at a higher multiple.

A recurring-revenue mix of ~35% by Year 3 is expected to support a 5.0–6.0× EBITDA exit multiple, materially re-rating the entry valuations implied by either the R200,000 / 20% or R500,000 / 50% terms.

This memorandum contains forward-looking statements based on assumptions believed reasonable at the date of preparation. Actual results may differ materially. Figures are illustrative and intended for discussion; they should be validated against the seller's audited management accounts during due diligence.