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 continue to run it as you do — so you realize value from the business you built, without giving up the business. When you are ready to move on, you pull the trigger: we bring in a talented new manager and buy the rest.
What size business does Teiken buy?
South African businesses earning R20m–R40m EBITDA, or profit. Big enough to stand on its own, small enough that we can pay attention to it.
Why do you buy exactly half, and not a controlling stake?
The reason is psychology, not control. Symmetry signals partnership, and you retain autonomy and accountability for the business you built. 80% turns Teiken into a controlling acquirer. 30% gives Teiken too little governance leverage to be a useful partner. 51% reads as extractive. 50% is the brand and the headline — negotiable deal-by-deal in principle, but the symmetry is the point.
Do I have to stop running my business?
No. We agree on a set of rules, and you continue to run it as you do. You keep autonomy and accountability for the business.
What does it cost to get an offer?
Nothing. A full offer and agreement is free, you get a price and an offer within five business days, and you deal with a founder from start to finish. One WhatsApp call, send what you have, and we do the rest.
How long does the whole process take, and what are the steps?
Nine steps, from an introductory conversation that costs you nothing but time through to payment. In order: an introductory conversation; a mutual confidentiality agreement; an initial request for information, which is your financials; a one-hour management interview; a non-binding offer covering both price and the rules of the partnership; due diligence alongside the drafting of the Sale and Purchase Agreement; SPA signing; conditions precedent, typically a Competition Commission filing and third-party consents; then payment and close, on which we become co-shareholders.
What financial information do you need from me?
As granular as possible: full monthly management accounts going back at least 3 years, annual financial statements — audited if available — and any other financial data you have on the business. We give you a detailed checklist upfront, so you know exactly what to expect.
When does the deal become binding?
The valuation and the term sheet are non-binding until the SPA is signed. At the offer stage the exclusivity provision is the only binding part. You can review the offer with your advisors, and sign or walk away.
What do you look for in a business?
Three 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. And the right size — R20m–R40m EBITDA or profit.
How do I eventually exit completely?
You choose the moment. When you are ready to move on, you pull the trigger — we bring in a talented new manager to take the business forward, and we buy the remaining 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 private equity not invest in this band?
At best, a typical PE fund needs five people to source, manage, and exit deals — roughly R20m a year in salaries and overhead. A 2% management fee on that cost base implies around R1bn under management. That team can run at most ten investments. Assuming 50% leverage, 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.
Is the fund open, and how large is the raise?
Our fund is currently open. We are raising R350 million to buy five to six businesses. Spots are limited — once the raise is allocated, it closes.
What is the team’s track record?
As a team we have closed five transactions with a cumulative value of over R5 billion, domestically and internationally. On the execution side we have built three banks and two fintech products across eight years of building startups — the technical machine 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 private equity, and he has managed businesses and served on boards. Leo Thesen builds the machine that makes the Teiken model work, and leads the technology that lets a small team run a portfolio of businesses. 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.
Why is there art all over the site?
Every image on this site is a real work by a South African artist, and every one of them is for sale — directly from the artist, at the artist’s price. We are not a gallery and we take no cut. Teiken is about backing South African talent, and that instinct does not stop at businesses.
Still deciding?
A full offer costs nothing, takes five business days, and you deal with a founder.