An Australian startup that recently hired a new North American president plans to grow its U.S. headquarters in Denver.
Capitaliz is a digital platform that helps privately owned businesses determine their valuation. It also helps create a roadmap for a successful exit, which could include a merger, acquisition, being purchased by an internal team member, transitioning ownership to a younger generation or going public. The platform is primarily built for advisors, including financial advisors, accountants, lawyers and insurance advisors, who assist with mid-market exits.
Capitaliz hired Jared Johnson as its new president of North America. Johnson previously served as the CEO of the Business Enterprise Institute, a Denver-based platform and resource hub for advisors and exit planners.
Johnson will work out of Capitaliz’s Denver office located at coworking space Venture X in the Dairy Block. He will oversee the company’s strategy, operations and regional growth. A large part of that role includes expanding Capitaliz’s market presence through marketing and hiring.
The startup plans to grow its current seven-person team, four of which are in Denver, to 20 by the end of the year, Johnson said.
“We’re not going to ask you to come be a number,” he said. “We’re asking you to come be a team member. We’re really asking you to do a lot of hard work, ultimately, that you’ll be rewarded for, but this is an investment in your career, not just a job that’s going to get you to the next place.”
Capitaliz plans to add three people to the company’s marketing team, another three to its client success team and one or two positions to the sales team in 30 to 90 days.
Hiring for the four-year-old company will take place across the Denver metro. Johnson said Captializ eventually wants people within all regions of the U.S.
“I think it’s important at this early stage of an organization to be able to have folks that can be involved in the culture personally, really hands-on,” Johnson said. “And frankly, I know that there are plenty of opportunities to do that virtually, I just happen to be of the belief that at least a few times a week, if you can come in and hang out with folks, it’s easier to build those relationships.”
The company does not have an in-office mandate but asks that employees visit the office three times a week.
Capitaliz and Johnson are bullish on hiring even during a tough market with few companies going public and a slowdown in mergers and acquisitions, which Morgan Stanley says is due for a “comeback in 2024.”
Having been in the exit industry for the last 10 years, Johnson said that about 70% of “closely held businesses actually transact internally, meaning the management team buys them out, their children take over, [or] key employees rise through the ranks to become leaders.”
“So even in a very tough market ... what we find is most of these business owners have an opportunity to capture what they need financially from an internal buyer, as well as continue some of their value-based tools,” Johnson added.
In addition to determining a company’s valuation, Capitaliz helps them add value to their business. Capitaliz rolled out a tool called Dynamic Revaluation in December to help advisers identify how changes and investments in the business change the company’s value. The new tool also helps advisors prioritize valuable areas to grow.
Johnson, who completed his undergraduate degree at Colorado State University and has an MBA from the University of Denver, joined Capitaliz on Feb. 1. Having a three-time small business owner as a father, Johnson said he is passionate about helping business owners realize their life’s dream through a successful exit.
“I want to be a part of a solution that really helps [business advisors] provide the best support to that business owner community as possible,” Johnson said. “So that as the business community moves forward, these businesses don’t just disappear and the dollars that they inject into the economy don’t just disappear.”
