Transaction Considerations
About Us > Transaction ConsiderationsCapital Structure
We are experienced in creating flexible capital structures and terms for any given transaction. The purchase price may be paid in the form of cash, notes, stock or contingent payments ("earn-outs") or some combination of these elements. As with most financial buyers, J2 raises the senior and/or subordinated debt necessary to finance a portion of the cash purchase price. We will work diligently to achieve our mutual objectives through creative capital structures.
Management
We look to acquire companies that are well run, but perhaps at an inflection point in their development and evolution. We believe in backing talented and knowledgeable leadership at portfolio companies and providing them with the resources necessary to drive growth in the business and consequent shareholder value.
Alignment
Regardless of the type of transaction, in all of our investments we align our interests with those of management using equity, both through direct investment and long-term equity incentives. Generally, we require management to make a meaningful investment along side ours to ensure that management, which is empowered with steering the company, shares in the value resulting from its effective stewardship.
Time Horizons
Whereas most private equity firms have fund lives that dictate the investment time frame and portfolio company exit strategy, J2 does not have these constraints. We are very flexible with respect to investment time horizons. Our principals have held investments for over a dozen years, however we also recognize that some investment theses call for rapid execution. In no case though, are our investment hold periods dictated by internal fund raising considerations. In general, we consider ourselves long-term investors and recognize that value creation often takes place over an extended time horizon.