Have any American searchers had luck launching and searching in Europe?

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September 29, 2020

by a searcher from Indiana University at Bloomington in New York, NY, USA

Depending on a few things related to my spouses career we may end up in Europe late next year. I have long hoped to launch a searchfund, but am curious about other's success outside the US. Both of us are American, but I would be open to partnering with European partners. I imagine it is going to be an uphill search if we end up abroad, but would be curious to hear from others.

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Reply by a searcher
from Miami University of Ohio in Barcelona, Spain
I am based in Europe, but haven't closed any deals over here. Prior to the pandemic most of my business was done in US, since it seems like I'll be stuck here I started looking more into EU (mostly Spain).

My anecdotal experience so far:

1. Deal multiples over here are higher than in the US. Not sure why this is, but I find most brokered offerings are doing less than 1€ million in EBITDA, but asking for a 6-10X multiple.

2. Financing is harder, though if you have 30% equity at least, there are very interesting options like October.eu.

3. Very few "Trade" industry businesses for sale. I am not sure if licensing is more complex over here, but compared to the US there is hardly any trade businesses for sale, where in the US this is a large portion of SMB sales.
commentor profile
Reply by a searcher
from University of Oxford in Reading, UK
I've not had any USA experience but generally I find financing is hard in Europe. Risk taking isn't encouraged and failure is seen as one and done. You'll never get funded again.
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