Any estimates on legal costs of starting search fund?

professional profile

August 30, 2020

by a professional from Temple University - The Fox School of Business in Philadelphia, PA, USA

There's not alot on the topic however I'd like some input from the community on what the legal estimates are for starting a search fund.


Please let me know if you have anything on:

1.) Self funded search 2.) Traditional search###-###-#### Single sponsor search

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commentor profile
Reply by a searcher
from University of Florida in Cumming, GA, USA
The only 'legal' cost associated with starting my self funded search was the LLC formation. And I just used Zen Business to set it up. Not sure what other legal items would be necessary for starting a self funded search. I have had talks with potential investors, but no contractually committed investors. Anything can happen between now and when I find a company so there was no need to get legal documentation for that. Hope that helps.
commentor profile
Reply by a searcher
from University of Pennsylvania in Austin, TX, USA
For a traditional search fund you can get the legal side set up for ~$10k. I am sure someone could do it cheaper but setting up these docs are critical to get correct if you are taking outside funding. You can use the Stanford docs as a starting point but make sure your attorney goes through them thoroughly as they have quite a few errors in them.
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