James Caan on sharing equity [Video]
James Caan has shared equity with the management team in each one of his businesses. Here he explains the dangers of being equity-precious
Founder of private equity firm Hamilton Bradshaw James Caan says he’s “always believed that you should share the equity”. He cites a lesson his father taught him to illustrate his point: “100% of nothing is still only nothing”.
He explains: “do I want to sit there with a business that I own all of, but it doesn’t make any money, or do I want to own a percentage of a business that actually is going to make me money.” Sharing equity is not something you should be “afraid of… it’s ridiculous… it’s a no brainer”.
The ex Dragon, who shares equity in “every single business” he’s involved in, concludes: “today if you’re sitting there. You’re feeling great because you own it all. Just look at the numbers”.