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 many financial buyers, J2 considers investments across the capital structure. We will work diligently to achieve our mutual objectives through creative capital structures.
We look to invest in companies that are well run, but perhaps at an inflection point in their development and evolution or lacking in capital needed to maximize potential. We believe in backing talented and knowledgable leadership at portfolio companies and providing them with the resources necessary to drive growth in the business and consequent shareholder value.
Regardless of the type of transaction, in all of our investments, we ensure our interests are aligned with those of management. Generally, we require management to make a meaningful investment alongside ours to ensure that management, which is empowered with steering the company, share in the value resulting from its effective stewardship.
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 fundraising considerations. In general, we consider ourselves long-term investors and recognize that value creation often takes place over an extended time horizon and we do not subordinate our decision making solely to meet artificial investment time horizons.