Buy-side advisor to support search process

searcher profile

March 06, 2023

by a searcher from INSEAD in Paris, France

Hello,
Has anybody considered hiring a buy-side advisor to support the search process in addition to a proprietary outreach? If so interested in knowing what the compensation scheme was.
Thank you.
Hugo

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commentor profile
Reply by an investor
from University of Commerce Luigi Bocconi in London, UK
Interesting question. Having searched myself and backed more than 5 dozen searchers: doing the work of a buy-side advisor is why investors are paying your search, so I‘d expect you to mainly do this yourself. However, you can of course engage with buy-side advisors on a success-fee basis (w/o retainer). Furthermore, it may make sense to engage with an industry specific case where sellers might respond better to someone from their industry as opposed to a searcher. I am sure there is other exceptional cases where it makes sense, but key is not to pay a retainer but only a success fee upon closing imho.
commentor profile
Reply by a professional
from Villanova University in West Chester, PA, USA
There are a lot of different structures, it really depends on what you're looking for in support - monthly retainer + success fee like ^redacted‌ mentioned, success fee without retainer like ^redacted‌ mentioned, consultation in exchange for equity, etc. I've worked on structuring a number of these if you need support on the legal side.
commentor profile
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