Jaan Capital
Criteria
Raj is looking for a profitable SaaS business to acquire so that he can invest the profits into people, systems, processes, sales, and potentially, acquisitions. To do that, he is looking for some specific characteristics in the business to buy.
SaaS
Jaan's expertise is in SaaS based businesses, primarily vertical market SaaS. We like to solve challenges for specific types of customers.
Product-Market Fit
We look for companies that are solving problems delivering significant value for a specific type of customer/industry
Recurring Revenue
Our minimum annual revenue is $5 million. To facilitate continual investment, >40% of revenue should be recurring revenue.
Minimal Customer Concentration
Any individual customer should be <20% of the recurring revenue This ensures continuing innovation for the market and not for a specific customer.
Profitability
To make immediate investments, We require a minimum of $1.25 million of earnings and 15% EBITDA margins
Company Culture
We believe in investing in the growth of the existing team and furthering their development, while adding additional headcount.
Transaction Process
Introductory Call
We talk to see if there is mutual interest and fit. An NDA is exchanged to ensure confidentiality.
​​​​​
​
Duration: 1 hour
Due Diligence
Raj and advisors do a deep dive into the company, including financial, technical, legal, operational, customer, and market.
​
Duration: 4-6 weeks*
Preliminary Diligence
Following an NDA, select financial and operational information is shared for Raj to produce an LOI (Letter of Intent).​​
​
Duration: 2 weeks*
Legal Docs & Closing
Raj and Seller work together with lawyers to draft documentation and finalize closing.
​​
​
Duration: 2-3 weeks
Letter of Intent
Raj provides an LOI to discuss and ensure alignment on anticipated structure and valuation.
​​
​
Duration: 1 week
An honest view of how long the process takes from initial conversation to close is 3 months*.
* Subject to availability of information.
Contact
I'm always looking for new and exciting opportunities. Let's connect.
310-927-0127