Are search funds used for buy and build acquisition models?

by a searcher from University of Manchester

2 years ago

Hi,

Are search funds commonly used for multiple acquisitions as per a buy and build model, or do they normally limit themselves to just one acquisition? 

If the buy and build model is the goal, I suppose one can get round this by using the cash generated by acquisition #1 and/or cash flow lending to fund further acquisitions, but I'm curious how this is normally approached. Any insight appreciated.

Best,

Andrew

4 likes
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20 comments

searcher from National University of Ireland, Galway

At Nua Holdings we are a buy and build, or even a build, buy and build model. We recruited our capital partner first so all are aligned around this approach. Also we have extensive operator experinece to be able to pull this off. Just doing first LOI- so early days.

2 years ago | like reply | 1 like

investor from Universidad Católica Argentina Santa Maria de los Buenos Aires

I completely agree with Alex. You have to know the business and be very in control of operations before you can think if inorganic growth would be good for the company's journey.

2 years ago | like reply | 2 likes

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