Acquiring 100% stake is mandatory for traditional search funds?

by a searcher from Fundação Getulio Vargas, São Paulo - Escola de Administração de Empresas de São Paulo

2 years ago

We have been finding several entrepreneurs who want to keep a minor stake at the companies to help and also to earn the upside. Is it doable for traditional searchers? What are the setbacks? Anyone can share a case?

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7 comments

searcher from Rutgers-The State University of New Jersey-Newark/New Brunswick - Rutgers Business School

As above, I'd say it's fairly common for deals of size which warrant it. It's also amazing if old owner can maintain and bring new customer relationships to the business. I read it's ideal to set up a new legal entity and roll over the owner's share into the new legal entity so that old liabilities do not follow.

2 years ago | like reply | 0 likes

searcher from University of Warwick

Yes seems fairly common

2 years ago | like reply | 0 likes

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