Canada's Looming Succession Problem
Free Lunch by The Peak
Tue, October 3, 2023
Podchat Summary

Driving Positive Social Impact through Entrepreneurship: A Conversation with Cordell Jax

In this episode, we sit down with Cordell Jax, the CEO and General Partner of Regenerative Capital Group, to explore the innovative business model of his social impact fund. Regenerative Capital Group is on a mission to drive positive change by acquiring existing businesses and working closely with entrepreneurs to create a regenerative impact.

Jax explains that the fund follows an entrepreneurship through acquisition (ETA) approach, which involves acquiring businesses and supporting entrepreneurs in their journey towards social and environmental impact. The fund is sector agnostic and focuses on businesses with earnings between $500,000 and $5 million.

One of the unique aspects of Regenerative Capital Group's model is the financing structure for entrepreneurs. Jax reveals that entrepreneurs acquire businesses with 50% debt financing, 25% seller's note, and 25% equity from the fund. This approach allows for a balanced and sustainable ownership structure.

But it's not just about financing. The fund also provides entrepreneurs with leadership training, capital, and access to a wider ecosystem of investors and advisors. Jax emphasizes the importance of supporting entrepreneurs throughout their journey and helping them navigate the challenges of running a business with a social impact focus.

Why focus on acquiring existing businesses? Jax points out that in Canada alone, 76% of small-medium enterprise owners plan to retire in the next decade, creating a unique succession opportunity. Regenerative Capital Group aims to acquire businesses from retiring owners and steward them towards wider value creation.

The response to Regenerative Capital Group's first cohort has been overwhelming. Jax reveals that they received a staggering 170 applicants for just six positions. This demonstrates the growing interest and demand for business models that prioritize social and environmental impact.

Join us for this insightful conversation with Cordell Jax as we delve into the world of entrepreneurship through acquisition and the transformative potential of regenerative business models.

Original Show Notes
76% of people who own small-to-medium-sized businesses are planning to retire within the next decade. What happens when they call it quits? Who will take over those businesses, if anyone? What will happen to the people they employ? These are all pressing questions, but the vast majority of small business owners in Canada do not have a succession plan. On this episode, Cordell Jacks, CEO and General Partner of The Regenerative Capital Group, joins us to explain... The scale of the wave of retirements coming in Canadian small businesses. The risks to the economy if we don't plan for the succession wave. Why entrepreneurs who buy businesses succeed more often than those who start from scratch. The interesting way his investment fund is incorporating social and community impact into their business model. ----- More episodes of Free Lunch by The Peak: Follow Taylor on Twitter: @taylorscollon Follow Sarah on Twitter: @sarahbartnicka Subscribe to The Peak's daily business newsletter:
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