The stages
- Valuation and sale readiness: clean up records, contracts and ownership.
- Heads of terms: price, structure, exclusivity and timeline, mostly non-binding.
- Due diligence: legal, financial and tax review by the buyer.
- Sale agreement: warranties, indemnities, conditions and payment terms.
- Conditions met and closing: approvals, transfer and payment.
Approvals to check
Mergers above the thresholds set under the Competition Act 89 of 1998 must be notified to the Competition Commission before closing. Licences, B-BBEE status and regulated rights (such as mining or water rights) may need their own consent to transfer.
Common questions
How long does a private business sale take?
Usually three to six months from heads of terms to closing, longer if competition or regulatory approvals are needed.
Is a share sale or asset sale better for the seller?
Sellers usually prefer a share sale because liabilities go with the company. Buyers often prefer an asset sale. The right answer depends on tax, contracts and risk.
Do I need Competition Commission approval?
Only if the combined turnover or asset values of the parties exceed the published merger thresholds. Small private deals are usually below them.
Thinking about buying or selling?
Start with a free business valuation, then we quote a fixed mandate fee upfront.
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Last updated September 2026. This guide is general information on South African regulatory procedure and is not legal advice on your specific matter. Dynamic Legal Services (Pty) Ltd is a private legal advisory firm and is not a government department or regulator.