Everything looks rosy and you’re ready to sell. This is the moment you’ve worked so hard for, and all the sacrifice is about to pay off. One or more potential buyers is knocking at your door, and you’re excited about what’s about to unfold. Here are 6 common mistakes that people make.
We have a multi-decade track record of success in operating and scaling businesses
We are passionate about transforming industries.
We’re used to being creative and moving quickly.
Know who you’re in business with throughout the journey.
We are a majority and significant minority investment partner for software, brands and enduring businesses with growth ambitions. We focus on founder-led and family-owned businesses
We invest in growing B2B software businesses with recurring revenues $1-50 million that demonstrate sustainable competitive advantage, as well as enduring long-standing/heritage brands or family owned businesses that have proven resilience, growth and profitability through the economic cycle with EBITDA $5-50 million.
We bring an active and operational mindset along with flexible, permanent capital to help investees deliver enduring growth.What we offer
We are experienced private company investors.
Our founding family and investment team have a multi-decade track record of success in operating and scaling businesses.
We were established by David Teoh, who founded and grew TPG into one of Australia’s largest telecommunications companies.
Decades of experience coupled with streamlined access to capital means your idea shows up in the world sooner.
We’ll help your business grow with:
- Flexible, permanent capital
- Efficient, agile decision making
- Direct access to our founding family and experienced talent
When it’s time to move on, you can feel excited about the next stage. You might be retiring, taking up an exciting career shift or starting another business from scratch. The urge to move on quickly can pull your focus away from important details. And these can lead to mistakes.
You don’t have to use a broker to sell your business. Every business is unique, with its own needs and structures. There are some strategies that can help you sell on your own. Get clear on what you want. People sell businesses for all sorts of motivations. You might be keen on top dollar over all else.
Frequently Asked Questions
What businesses do you look to invest in?
We look to invest in industry-specific software and technology companies that have annual revenue of $2m – $50m, are profitable and at least cash flow break-even. Read More
What is the process of selling my business to / raising capital from Teoh Capital?
We have an agile, streamlined and single-layered decision-making process. If we develop conviction on an investment opportunity, we seek to complete the transaction quickly and commence the real work of helping the business grow.
Our typical investment process will involve preliminary discussions and information to understand your product, business and competitors. If it fits our criteria and we like the opportunity, we move to a proposal and can complete due diligence and long-form documentation in less than 8 weeks
Other possible suitors for your business, like private equity, venture capital or trade buyers, often have longer and more daunting due diligence processes. Due diligence for us is mainly focused on understanding growth potential, not box ticking, and most importantly getting to know you – we understand that people are the most important part of any software business.
Why is Teoh Capital a better partner than other investors?
Our flexible capital model is well suited to all transaction situations. We offer ‘capital out’ solutions, so as a founder you can realise the value of what you’ve built. But we can also invest growth capital into a business, to accelerate growth and the value of the business
Like private equity, we offer founders and investors a two-stage exit to maximise proceeds, and full liquidity where there is an objective. You can sell part of your shareholding now, and part later, with the retained part benefitting from the growth and increased value which we will drive to together. But unlike most private equity funds, we invest without a fixed time horizon. Many investors, including most private equity and Venture capital funds, have a limited time horizon driven by fund structures and their management fees. This time horizon may not align well with the company’s growth lifecycle. Being distracted by exit plans a mere year or two after a transaction can distract your company and staff from their most important work, and not optimise the value of your shareholding.
Like venture capital funds, we can invest growth equity to accelerate growth and increase the value of the business and its impact on the world. Unlike most venture capital funds, we are able to provide ‘capital out’ solutions, so that you can realise part of the value of your business today and de-risk. We find this de-risking is often the best way for entrepreneurs to position for the next stage of growth while being able to sleep at night in the mean time!
Our founder-investor, David Teoh, and investment team have unparalleled pedigree in founding, operating and growing software and technology businesses, over many decades. Partnering with Teoh Capital means you will have continuous and direct access to David Teoh and our expert team.
How do business operations work after partnering with Teoh Capital?
We let you keep doing what you do best and provide guidance where you want it. If we decide to invest in your business, it means we like your management team and want to provide continuity.
We are hands-on where necessary, but we leave the day-to-day business operations to you. Our founder-investor and investment team are always on hand to support and provide guidance.
Why should I choose Teoh Capital for raising capital?
Led by founder-investor David Teoh, a leading software investor in Australia, Teoh Capital offers flexible, permanent sources of capital to tech and software companies in New Zealand and Australia. Direct access to our founding family, while you can remain the owner of your enterprise and autonomously drive your business into the future.
Learn more about the software investor strategies we can provide by introducing yourself through our online contact form.
What should I expect before the completion of raising capital in Australia and NZ?
Raising capital through an investment firm is often a slow-burning, cautious process. But at Teoh Capital, we practice efficient, agile decision-making and have streamlined processes. Before becoming a member of the Teoh Capital family, you can expect a highly personalised acquaintance protocol that carefully determines our potential fit. Whether we’re acting as a software investor in New Zealand or Australia, we want to meet you on your terms, and help you do what you do best as an organisation.
If you are an industry-specific software or technology company, we would love to hear from you.
Why would a company want to be acquired?
There are many different reasons why businesses look to be acquired or look for opportunities for capital raising in New Zealand and Australia. One of the most common is that they are looking for opportunities to reach a wider market but don’t have the appropriate distribution network, funding or necessary support. They may also require leaders who have the necessary skills to steer the company as it grows. Acquisition can be a viable way forward to expand the scope of operations, adopt new leadership or simply secure finance.
This is where a software investor in NZ or Australia steps in and can provide the necessary funding to take your organisation to the next level. You can learn more about our investment criteria right here on our site.
What makes an acquisition successful?
At Teoh Capital, we’re a leading tech and software investment company across industries like transport and logistics, retail, health, fintech and much more. Having worked on so many expansions, we’re firm believers that success looks different for every acquisition. It depends on the goals of the company that’s being acquired or is raising capital in NZ or Australia. However, there are some broad strokes that we would consider key marks of success:
- Retention of brand identity
- Expanded audience and opportunities to reach new markets
- Development of new products and services under the same banner
- Increased availability of funds for R&D
If this sounds like it’s of interest to you and your business, why not get in touch with us today to find out more?
For all investment related enquiries, please introduce yourself via e-mail or the provided form.
For all investment related enquiries, please introduce yourself via email or the provide online form.