No, I haven't at all thought one day about the percent ownership of the business that I own. I definitely feel a commitment to returning capital to my investors over the long haul. But I have never thought like oh man, I wish I would have not done that and raised additional equity. It was the absolute right decision.
Acquiring Minds
Growing Profits 30% in the First 1.5 Years
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Excellent, excellent stuff. And it's just two things to say on that in this, in, in the world of finance generally, the idea that you could bring relatively little cash to a transaction, to the acquisition of an asset, whatever that asset is, real estate otherwise, and, and own, be the 60% owner. Yeah, that is just, that's an enormous number in almost all other kind of fields of finance or asset…
So it's still, it's still just an enormous amount of ownership for very, very little of your own equity into it. So I point one, point two is, I, it's, it's good to look at the, like the relative decline. So going from 70% to 60% as I said, is just really what it, whatever that is of 13, 14 ish percent step down.
Not that material in the, the grand scheme of things. But at the same time you're, you're giving your investors, you're, you're taking your investors from 30% to 40%. They're seeing a 33%, the investor group is seeing as a whole a 33% bump in their equity.
It's much more material for them. And that's something that Nicholas James, partner in Mind's Capital, will often say about self funded searchers, is that you can really, by offering, by going from 90 to 80% for example, this is an extreme example.
But from being willing to go down from 90% ownership to 80, you're effectively doubling what your investors how, how much your investors can participate in and how much, how much ownership they have while only taking yourself down, whatever that is. 11%. And it's generally a good and good faith trade to make and it sounds like. And that you buyer won't likely feel.
So, so there's kind of two dynamics here. There's. There's the one that we. The primary one which is the over equitizing to sleep better at night to put the business on more solid footing as you get into it.
That's the key point. But secondarily is this idea of there's an, there's an opportunity for a good faith gesture to your investors by not being greedy about the equity that you're offering them.
Yeah, and I think that's, that's absolutely true. And I was very fortunate to partner with, with one of my, my lead investor like early on in the process and he gave me great feedback on loi and I'll shout him out now. Michael Jorkas, if you're ever looking at an aerospace the, the defense deal, like he should be your first call.
He's amazing. And so he gave me some amazing feedback and I just knew like after those sessions I wanted to work with him and he was kind enough to open up his Rolodex and help me with, with the fundraising process. And through that actually met some other people and they were willing to do deals that gave me better ownership stakes. But I was really committed to working with Michael and his team.
And so there are multiple ways in which you can make space to get investors bigger allocations. I could have reduced the check that I wrote to the deal because I wrote a bigger check than I needed to for the sba. But again, I don't think that sends the right signal.
And so I think ultimately being willing to give up some, some greater ownership to, to, to make the deal safer, I think actually gives investors more confidence in, in, in you and like actually to the point that you made about the making space for them to have a greater ownership in the business. They're more invested in it in all the things you outlined.
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