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.
Have any American searchers had luck launching and searching in Europe?
by a searcher from Indiana University at Bloomington
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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.