There's an art and a science to buying a company via the Search Fund model
The inflection point on the risk curve in the Search Fund model is at the time of acquisition. Buying a good company in a good industry is critical to maximizing your odds of success. Most Search Fund entrepreneurs have never bought a company before, so don't be daunted by the mechanics—or the “science”—of doing a deal.
The "art" of buying a good company is what good investors will help you figure out. Your job as a searcher is to find the business and convince the seller to sell to you. Our job is to help you avoid buying a bad business. We look at each new investment opportunity as if we were the Search Fund entrepreneur, always asking ourselves: "Would we want to buy and run this company?"
Our entrepreneurs have the following support during their acquisition:
- Time to engage in the details of the company and deal dynamics with the seller
- Exclusive focus on understanding fit between Search Fund entrepreneurs and their target acquisitions
- Our Special Limited Partners, who have relevant operating experience and are willing to take board seats in Search Fund operating companies
- Lenders that are comfortable with the Search Fund model