Anyone doing a sponsored search and willing to share info/best practices?

searcher profile

March 25, 2020

by a searcher from IESE Business School in San Clemente, CA, USA

I'm looking to begin my sponsored search with a partner (I know that's not too common), but we are trying to bootstrap here by putting together our own operating agreement and LLC Agreement. Would anyone be willing to share best practices and/or legal documents that we might be able to make use of? We have a somewhat unique structure we are trying to arrange.

The search would be a partnered search with one sponsor. The sponsor would have the same rights as any normal search, but if the sponsor rejects a deal, we'd like to be able to offer the deal to other potential investors. We need a partnership agreement and also an LLC Agreement that could function for our purposes.

Any help would be greatly appreciated!

4
2
125
Replies
2
commentor profile
Reply by a searcher
from The University of Chicago in Chicago, IL, USA
The Stanford Search Fund Primer exhibits includes LLC and other agreement examples. Can you modify those to reflect one investor instead of the traditional 10-15?

For what it's worth, I would expect the attorneys with lots of experience in the search space can set this up quickly for <$10k assuming you are using a standard structure w/ minimal negotiation. If you are planning to spend the next ~2 years searching and 5+ years operating, it is not a large expense to ensure you have the right structure in place.
commentor profile
Reply by a searcher
from IESE Business School in San Clemente, CA, USA
Clifford, thanks for your response. We are definitely going to use a lawyer, just trying to get something put down on paper first to make sure we have an understanding and know the right questions to ask when we get there.
Join the discussion