The Fundamental Values I Uphold Every Time I Structure a Deal by Dr. Sanjay K. Patel, MD
Posted by: Sanjay Patel
20th Jun 2016
As one of the Managing Directors of Chalak Mitra Group of Companies, I act as the group’s Chief Strategy Officer. One of the main aspects of my job is to seek out capital investments. I work very closely with investors to establish strong, win-win relationships built on trust. From a very young age, I understood that these fundamental ideals are more than just important, they are essential. I practice this belief and I approach every deal with the investor’s best interest at heart. The rewards that I receive are not just monetary, it truly makes me happy to see others achieve success and I am grateful to have the opportunity to share in their success.
It Must Be a Win-Win Situation
Every step of a business deal, from writing up the plan, to raising capital and execution, has to be beneficial to every party. I have been presented with many proposals over the years that weren’t as equitable as others. In these instances, I asked whether they would sign this type of deal. In most cases, the answer was that they wouldn’t. I was perplexed, to say the least. Why would you expect someone to enter into a deal with you if you wouldn’t take the deal yourself? My response is: you shouldn’t.
I deal with investors on a daily basis, and my main concern is that they are comfortable with what they’re doing. I spend a significant amount of time crafting the structure of every deal so that it’s a win-win situation. Neither party should ever feel as though they are being treated unfairly. I ask for input from investors and adjust accordingly. It’s a slow, patient process, however, the payoff is that everyone can feel good about the deal.
Earning and Maintaining Trust
They say that trust isn’t given, it’s earned. I believe that to be true. I had a built-in level of trust when I first started investing with the other managing directors at CMG. You see, we were all friends, and one day the guys came to me with a proposal to invest in a restaurant. Although I didn’t get involved with that deal, I did eventually invest with them. As time went by, I became a trusted adviser, helping them draft deals, and raising capital. When I came aboard as a managing director, I had a solid foundation of trust that, to this day, remains strong and unshakable.
Building a strong relationship with investors is much the same process. You cannot achieve trust in a short amount of time.Â However, you can certainly lose it quickly. Act with honesty and integrity in everything that you do and you will earn the trust of others. Over the years, I have developed many strong friendships with investors. I earned their trust, not just in a business sense, but personally as well. The rewards I receive from these friendships are far more valuable than the monetary gain we have realized.
Putting Others First
My wife sacrificed her plans to become a pharmacist to stay home and take care of our children and home. My parents live with us, and we have a constant flow of relatives that come and stay for various lengths of time. The selfless way she puts the immediate wants and needs of our family above her own is an inspiration. I strive to do the same in my personal and business life alike. I believe that it’s one of the reasons that I have achieved the success that I have.
Some investment firms take a salary before the investors get a return, and they earn a commission later. This seems like a one-sided unfair practice that does not benefit the investor. At the Chalak Mitra Group of Companies, we do things a little differently. We don’t take salaries or commissions until we have earned them. We believe that it’s our responsibility to earn our keep, so to speak, so we are driven to succeed. We truly care about our investors so much that we are truly more concerned about their money than our own.
The next time you sit down to write out a business plan, or you’re approached with a deal, consider what I’ve said here. Make sure that every deal you enter results in a win for both parties, that you remain trustworthy and that you genuinely care about others. It’s been my experience that following these fundamental ideals leads to great rewards personally and professionally.