Equity differences between traditional and self-funded search?

by a searcher from INSEAD

8 months ago

I've seen several threads that have 'qualitative' comparisons between traditional and self-funded searches. Are there any benchmarks on how much of a difference you can expect in the equity if you did a self-funded vs. traditional search? 

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searcher from Hult International Business School

Interesting comment Thomas, but why are you suggesting the self-funded could look at small business only and not larger? are you thinking about investments coming from the searcher but without any investors?

8 months ago | like reply | 0 likes

investor from University of California, Berkeley - Haas School of Business

The biggest difference in the quality of the company you can buy. With traditional, you can buy a high quality scalable $10M+ revenue business for 5-7x EBITDA. With self-funded, you are typically looking at non-scalable small businesses in the $500k-1.5M SDE range.

8 months ago | like reply | 1 like

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