I have been meaning to post for about 5 months, but my to-do list never seemed to let me. In December of 2021 I acquired Management Science & Innovation (MSI) after an 18-Month self-funded search. I am thoroughly enjoying my new role operating! The company is a boutique strategy and automation consulting firm with a history of both government and commercial clients.
A few quick takeaways from the search process:
1. Truly understand the differences between a self-funded and traditional search (and other models) before you start. Have a good reason and the logistical ability to execute your choice. Both methods are great options, but both carry their own risks/rewards. Make sure if you have a spouse or partner that they understand what is coming because the search will cause life disruption.
2. If you are like I was and have never run an acquisition and are not traditionally searching - get smart advisors who are personally (and financially) invested in your success.
3. Have a defined prospecting process, scoped qualifying criteria, and a good story that creates credibility, value, and differentiation with the seller. It is a sales job. You are selling yourself and competing in an M&A marketplace that will often leave you outbid - understand how you will make up the difference in value.
4. If you are using lender financing, make sure you choose a good banking partner and have a strong grasp of the lending process.
Nothing groundbreaking, but these were areas I believe would have led to failure if I had punted them.
I want to give shout outs and thanks to key partners:
1. DL Capital Partners – (Adam Lev and Eli Drucker) If you are self-funding and looking for advisement, I highly recommend you reach out! They are great lead investors and partners, both pre and post acquisition.