The inside story of a misaligned acquisition—and the tough decisions OK must now make. In 2023, OK Zimbabwe spent millions to acquire Food Lover’s franchises in Avondale, Borrowdale, and Bulawayo. This week, the stores in Avondale and Borrowdale announced they are closing down. Why is this happening? What went wrong, and what happens next?
"If we take the conservative approach and apply the market rate at the end of the financial year when the acquisition was concluded, it would work out to about US $2 million.
The real value is likely more as the timing of the deal would have been earlier than 31 March 2023, but it’s safe to say “millions” were spent."
You mean it only cost $2m to purchase the entire Food Lovers business? It must have been debt risen to be so cheap.
"If we take the conservative approach and apply the market rate at the end of the financial year when the acquisition was concluded, it would work out to about US $2 million.
The real value is likely more as the timing of the deal would have been earlier than 31 March 2023, but it’s safe to say “millions” were spent."
$2million is the minimum. It could be much more.
Insightful as always 👏 👌