What people ask us before they get in touch.
Straight answers, in the fewest words that are still true. If yours is not here, ask it in a voice note — a founder will answer it.
If you own a business
What does Teiken do?
We buy 50% of your business at a fair price. You keep the other half and keep running it as you do, so you are paid for what you built without giving it up. When you want to step back, you say so: we bring in a manager to take your place, and we buy your other half.
Is my business too big or too small to talk to you?
No. We would like to hear from owners of South African businesses, big or small. A conversation with us comes with no obligation.
Why do you buy exactly half, and not more or less?
Equal halves make us partners rather than your new boss. You keep running the business, and you keep answering for it. At 80%, it would be our business and you would work for us. At 30%, we would have too little say to be useful to you. At 51%, we would always have the last word. We can discuss a different split for a particular business, but equal halves are the point.
Do I have to stop running my business?
No. We agree a short set of rules in writing, and you keep running it as you do. Day-to-day decisions stay yours; a short list of big ones, such as borrowing, large purchases and selling the company, we agree together.
What does it cost to get an offer?
Nothing. A full offer costs nothing, and you deal with a founder from start to finish. Before the offer we need two conversations and the figures you already have. We do the rest.
How long does it take, and what are the steps?
How long it takes depends mostly on our checks and on the lawyers. There are nine steps, in this order: a first conversation, which costs you nothing but time; a confidentiality agreement we both sign; your figures; a one-hour interview with you; our written offer, covering the price and the rules of the partnership; our checks, while the lawyers write the sale agreement; signing the sale agreement; the conditions that must be met before payment, usually Competition Commission approval and permission from anyone whose contracts require it; then payment, after which we own the business together, half each.
What financial information do you need from me?
As much detail as you have: monthly management accounts for at least the last three years, your annual financial statements (audited, if they are), and anything else you have on the numbers. We give you a checklist at the start, so you know exactly what to expect.
When does the deal become binding?
Only when we both sign the final sale agreement. Signing our offer does not commit either of us to the deal, with one exception: for an agreed period you do not negotiate with anyone else while we do our checks. You can read the offer with your advisers, and sign it or walk away.
What do you look for in a business?
Two things. Good people: you have built your business around people worth trusting, and so have we. A robust business model: your revenues are predictable and your costs are controllable. Size does not decide it — we would rather talk to more owners than fewer.
How do I exit completely, and sell you the rest?
You choose the moment. When you want to step back, you say so: we bring in a manager to take your place, and we buy your other half.
If you invest
What is the investment thesis?
There are approximately 5,000 businesses in South Africa earning between R10 million and R40 million EBITDA. Below that band a business is too small for institutional capital; above it, competition compresses returns. Between them sits a set of profitable, owner-run South African companies that no fund is built to serve. Whoever finds a way to access these businesses faces no competition, and can optimise the three main return drivers — cash yield, growth, and risk.
Why can traditional buyout funds not invest in this band?
At best, a typical buyout fund needs five people to find, run and sell its investments — roughly R20m a year in salaries and overhead. For a 2% yearly management fee to cover that cost implies around R1bn under management. That team can run at most ten investments. If half of each purchase is paid for with borrowed money, that requires R100m of equity per deal, an enterprise value above R200m, and an EBITDA above R40m. Below that line, the fund economics fail. Above it, competition compresses returns.
How much are you raising, and can I still invest?
Places are limited. We are raising R350 million, one business at a time, to buy five to six businesses. Once the places are taken, we close.
What is the team’s track record?
As part of earlier deal teams, Fred has closed five transactions with a cumulative value of over R5 billion, in South Africa and abroad. Across eight years of building startups, Leo has helped build three banks and two financial technology products, and he builds the technology behind this model.
About us
Who runs Teiken?
Two founders. Fred Stegmann leads deals, capital, and investor relationships; his background is in corporate finance and business acquisitions, and he has managed businesses and served on boards. Leo Thesen leads the technology that lets a small team find, buy and look after several businesses at once. You deal with a founder, start to finish — no intermediaries.
Where is Teiken based?
Cape Town, South Africa. We buy South African businesses.
How do I get in touch?
Leave a voice note on this site — tell us your name, what your business does, and what you are looking for — or type it instead if you would rather. There are no obligations and we will get back to you. You can also email hello@teiken.co.
Still deciding?
A full offer costs nothing, and you deal with a founder.