How much is too much?

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May 13, 2022

by a searcher in West Palm Beach, FL, USA

The first deal that I looked at had an enterprise value of about $10m and that seemed manageable for reading money as a self-funder searcher, but now I found the perfect business for my expertise, but the EV is closer to $100m. I know that's obviously too big for search funding standards, but does anyone have any suggestions?

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Reply by a searcher
in Minnesota, USA
You are just playing at a different level with that higher valuation...just keep in mind the business that you were eyeing before at $10M is now 10x different, and your long term value and ability to lead it must be commensurate with that increased complexity and size. There will certainly be investors to get you there, but the amount of time and effort will be considerable and you'll have to demonstrate credibility and ability to be successful in that role quickly. Good luck!
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Reply by a professional
from University of Maryland at College Park in Danville, CA, USA
In my day job at McGuireWoods I specialize in helping independent sponsors with investor introductions and I gave a presentation to the Searchfunder community on this very topic last summer, which can be viewed here: https://youtu.be/GnpFOWS3TwM
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