An online marketplace for buying and selling businesses, CompexAfrica, has launched in Nigeria, claiming to solve the “dearth” of opportunities for exits for small and medium enterprises (SMEs) in Africa.
CompexAfrica allows people to list their businesses, and match them to buyers using brokers and business advisory companies.
The site is launching with 100 companies already listed on the platform, as well as a number of pre-vetted advisory companies ranging from due diligence experts to financial analysis firms.
The startup – which is funded and accelerated by Sasware – says it aims to catalyse business exits across Africa.
“The lack of an exit culture in most SME’s makes businesses susceptible to death in Africa. Many small and middle market companies in Africa go through the business life cycle of startup, maturity and end in death,” says Fredrick Ereku, CompexAfrica’s business development manager.
“Reasons for this can vary from bankruptcy, retirement or death of business owner, tough competition or just simple loss of interest by the business owners.”
The company says it also provides a boost to business brokers, by providing a “one stop shop” where they can access more deals than would be possible as an independent player.
