Info on search funds that I can share with a potential seller?

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September 01, 2020

by a searcher from Northwestern University - Kellogg School of Management in Austin, TX, USA

I'm talking to a potential seller who really doesn't understand or like the idea of an "investment group with a board of directors" running his business. Does anyone have a suggestion for information on search funds that I could share with the seller? Hoping to find a few articles or websites that highlight the different between search funds and typical PE.

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Reply by a searcher
from Rice University in Houston, TX, USA
There is a good article that the NYT did on Chenmark Capital. It's and easy read and I think the article does a good job simplifying the entrepreneurial through acquisition path for somebody who is not well versed in search funds. https://www.nytimes.com/2015/09/10/business/smallbusiness/entrepreneurs-who-buy-small-companies.html
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Reply by a searcher
from Dartmouth College in Richmond, VA, USA
Nick, I'm sure you've thought of this... explaining to the seller that search fund investors who're on a board will contribute a powerful network - to win new business, raise additional capital if necessary, avoid legal mistakes, etc. And that they are focused on growth, not cost-cutting. They operate with a light touch - when the CEO requires help, etc etc.
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