How a deal works

Four steps, end to end.

From the first conversation with a founder to a quarterly distribution landing in an investor's account, every Teiken deal walks through the same four steps.

PROGRESS
01 / 04
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02
03
04
Step 01

Target identification

Cash-generative SA businesses, R20–40m EBITDA, run by founders who care about the company they built.

BEHIND THE SCENES

Sourcing runs through an AI-native pipeline that pairs structured public-data scraping with hand-built relationships. A two-person team is leveraged by software that filters thousands of candidates down to the small handful worth a conversation.

Step 02

Terms agreed

A single, transparent offer covering price and partnership rules. Non-binding until the SPA. Exclusivity is the only binding part.

BEHIND THE SCENES

The term sheet covers capital allocation, governance, transfer mechanics, and exit. Same shape on every deal — structural discipline depends on writing the same document, not bespoke ones.

Step 03

SPV structured, investors subscribe

Each deal lives in its own SPV. Family offices subscribe deal-by-deal. No blind pool. Mandatory distribution policy written in from day one.

BEHIND THE SCENES

Liability isolation between deals, cap-table cleanliness, exit flexibility per deal, investor optionality. Closing fees 2–5%, management fee ~2% AUM, carry 20% above ~10% hurdle.

Step 04

Teiken on board, founder runs the business

Teiken takes a board seat. Founder runs the company. Quarterly distributions begin. The shareholder agreement aligns everyone over years, not quarters.

BEHIND THE SCENES

Year 1–2: per-deal SPVs, family-office investors, sector-agnostic. Year 3–5: portfolio of 8–15 businesses with recurring distributions. Year 5–10: holdco consolidation, dual-class structure, eventual JSE listing.

The arc, in plain language

From one deal to a portfolio.

Selling out is not the goal. Compounding is. We sell only opportunistically — when the capital from a sale can be redeployed at a higher rate of return than it would have earned in the business.

YEAR 1–2

Per-deal SPVs

Family-office investors. Sector-agnostic. Quality-strict.

YEAR 3–5

Portfolio of 8–15

Recurring distributions. Optionality to specialise.

YEAR 5–10

Holdco consolidation

Dual-class share structure. Eventual JSE listing.

Questions about any of this?

We'd rather walk a real founder or a real investor through this in a conversation than pad the page with detail. Get in touch.

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