How Do You Narrow The Scope?

April 17, 2023

by a searcher from University of Tennessee - Knoxville in Nashville, TN, USA

Hello, SearchFunder community! I was unaware of search funds until a few months ago and have since been slightly embarrassed that I hadn't learned of the concept sooner. It would have saved a decade or more off of my career trajectory.

I'm a non-traditional Searcher, family man, mid-40s, CPA, and have broad industry and C-suite environments reporting to Boards experience. My 'MBA' was earned through experience and making other people wealthy. That shared, I am soliciting feedback from the group for a question that I have not adequately resolved in my journey.

The question is, "How do you narrow the criteria scope when you are industry agnostic?" My general thesis is US-based, B2B/B2G, $1M-$4.5M EBITDA, solid middle and/or upper management in place, scalable both organically and through roll-ups/tuck-ins/acquisitions, 20+% FCFF, and within the technology/manufacturing/professional, scientific, and technical services industries. There are thousands of great businesses that meet this criteria. I'm a big believer that you make your money when you buy, not when you sell, so you better get it right on the front-end.

What solutions do you recommend, SearchFunders?

Reply by an investor
from New York University in New York, NY, USA

I've gone through - and continue to go through - this process. I think for many self-funded searchers that is the case - it is an iterative process. It’s good that you recognize that you need to narrow this down - particularly the size - as this will impact your financing options, role at the company, level of support, etc. Happy to get on a call to give you some ideas - just DM me.

Reply by a professional
from Villanova University in West Chester, PA, USA

I really recommend investing in a business you enjoy being a part of. One doing something that excites you, a team you would enjoy supporting, an industry that you want to learn more about, etc. Something that pulls you toward it. With every business, you acquire assets and problems. It's helpful to have something more that makes the hard days and headaches worth it.

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