Jaan Capital
Jaan: "Life" or "Loved One"
Choose carefully who you pass your legacy onto.
If you're thinking of selling your business, there are different considerations on who and how you leave your legacy (to).
Here are a few things to consider when selecting your successor and where Raj fits into this mix.
How Raj Operates
1 / Attention
We are looking for only 1 company to acquire. This would be Raj's sole focus and receive 100% of his professional attention. This wouldn't be part of an portfolio investment, but Raj investing his livelihood in it.
3 / Deal Terms
Raj is flexible in the terms to satisfy the seller's desires. His goal is to do what's best for the company and staff. In his previous acquisition, the seller retained a small portion of equity and also provided for a seller's note with a generous interest rate. It was a balance to do right by the business. Many of the management team also received equity after the acquisition.
5 / Duration
Raj does not have a timeline or pressure to sell the business. There is no "fund life" or implied end date. Raj wants to run this business for as long as he's the right person to do so.
2 / Staff
Raj's primary goal is to grow the business by expanding on what made your company great, your staff. In Raj's previous acquisition, he retained all of the staff and invested in more people to promote the growth of the business.
4 / Capital Source
Depending on the size of the business, Raj will either fund an acquisition with a combination of his own capital, debt financing, and/or will reach out to the investors he's already worked with. Raj has received commitments to step in for a transaction if necessary. Raj has the flexibility to make the best decisions for the long-term vision for the company.
6 / Legacy
Raj recognizes the impact of what an owner/founder has on a business. Unlike a strategic that could just be looking for the assets and customers, Raj values the main asset which is it's people. Private Equity is about taking the cash out of the business and cutting expenses. Raj wants to put the money back into the business to carry the legacy and maximize it's potential.
