EXPLAIN IT LIKE I'M FIVE...AND DID I WALK INTO THE WRONG BAR?
I was referred here by someone with a 9 figure Private Equity fund. Trying to figure out if this place will be beneficial.
From what I can tell, search funding was created as a way for people with degrees to search for businesses in which they have little expertise; leaning on their alumni to assist with investment, advice, due diligence, etc.
I'm an operator, not an MBA. Worked with both moonshot startups all the way up to Fortune 50 companies in the past. I'm extremely heavy on the operations expertise side and have a pretty decent range of people I can pitch for funds that range from angel investors & friends/associates to principals at places like Lerer Hippeau & First Round.
However, I am not a deal-maker and capital structure guy. I understand business acquisition & debt/equity financing at a business level (when it's needed & where vs when it's not), but I don't feel like I would be great at negotiating all the ins & outs of the legal details and I can definitely tell you I won't enjoy the process at all.
I'm a doer. I know what needs to happen in a business for my industry, can size its value/potential up (incl its owner) rather quickly; sometimes in minutes/hours...not days or weeks. I've been successful any time everyone got out of the way and let me do my job. And I'm naturally a miser, so I'd also loathe spending money with wild abandon just because I have it at my fingertips.
I also notice that a lot of the deals I've seen people with on here are single purchases; one transaction. My use case is a bit different as I have some prerequisites that need to take place first before I can deploy larger sums of capital. I'm building a vertical of different sectors all run and operated as a single company. It's a rare way of acquiring/running businesses in the food space. I would be making 3-6 smaller acquisitions (think anywhere from $100k to 2m; all cash-flow positive) in a particular city for the first year or two, then ramping up to another[redacted]complimentary operations in the same area to complete the network effect I'm working towards. Once refined, we would go to another city and do the same thing, but much faster: acquiring all[redacted]businesses rapidly under the new model as one continuous deployment. This capital could be a mix between debt/equity - not just pure equity or pure debt. What I've designed is pretty flexible in that regard.
>Should I be looking for a partner who is an MBA/Deal-maker and let them focus on CPAs/Lawyers/Investors or work at doing these things better myself/outsourcing?
>Are most investors here looking for single acquisition deals and then want to get out in several years? Or are there investors open to deploying smaller capital to build a base, reach the desired outcome, then follow-on with the big investments to fund extremely rapid expansion even though it would be 10 years or more until their exit?
Forgive the long post, trying to figure out if I'm in the right place for my goals/vision. Worried that what I'm building is a little advanced/complicated and "startup-y" for most of the audience here since I'm looking to make MANY acquisitions over time and getting them to work in concert instead of buying a company. Thank you in advance!