Acquisition Cost Breakdown — MCG Advisory

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Acquisition Cost Breakdown

The purchase price is only part of what an acquisition costs. This tool maps every cost category you will encounter — from due diligence through to integration — so you can budget accurately and avoid surprises.

Step 1 — Deal basics
The agreed or estimated consideration for the target business
Sector affects regulatory and compliance costs
Step 2 — Deal structure

The structure of the deal significantly affects the cost profile — a share sale has different costs to a business and assets purchase.

Share deal

Share sale

Buyer acquires the shares of the company, inheriting all assets and liabilities

Asset deal

Business & assets purchase

Buyer acquires specific assets and contracts — does not inherit historical liabilities

Statutory

Merger / amalgamation

Two entities combine under the Companies Act — higher legal and regulatory cost

Cross-border

Cross-border acquisition

Target is in a different jurisdiction — adds forex, SARB, and international legal costs

Step 3 — Additional cost items

Toggle on any items that apply to your transaction. These are not always required but add meaningful cost when they are.

Environmental / technical due diligence

Relevant for manufacturing, mining, or property

Competition Commission filing

Required if combined turnover exceeds thresholds

Employment / HR restructuring

Section 197 transfers, retrenchments, or restructuring

Brand / marketing integration

Rebranding, website, signage, and marketing materials

IT systems integration

Migrating or consolidating accounting, ERP, or CRM systems

Earn-out structuring & monitoring

If deferred consideration is linked to future performance

Total all-in acquisition cost

Purchase price

Transaction costs

Costs as % of deal

Estimated working capital

Cost item Low Mid High

Cost category breakdown

Acquisition cost chart

When costs are incurred — payment phasing

Cost ranges are based on South African market rates for lower and mid-market transactions (R5m–R500m enterprise value). Actual costs depend on deal complexity, advisor experience, and the specific issues encountered during due diligence. MCG Advisory provides fixed-fee transaction advisory scopes — contact us for a tailored quote based on your specific transaction.

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