Marketing-Oriented Professional Services Firm

searcher profile

April 18, 2023

by a searcher from The University of Georgia - Terry College of Business in Atlanta, GA, USA

Good evening!

I’m in the early stages of starting a search fund that will acquire a southeast US-based, marketing-oriented professional services firm (~$5 million in AGI and between $750K to $1 million in EBITDA) with the objective of exiting after an eight-year holding period at anywhere from 8X to 12x. I’ve identified the subject-matter area advisors that will help source, diligence and negotiate the right acquisition target. I’ve also built the tools, templates and IP that will be infused into the acquisition in order to drive improved profitability as well as top line AGI growth. From here, it’s a matter of raising the capital that will allow me to flip the switch and go.

I’m looking to raise around $2.5 million ($500K will go to deal costs). The seller will receive 50% cash up front with the remainder to be paid over a two-year earnout.

NB: there will be a 50/50 equity split between myself and the LP’s in the fund.

Feel free to reach out if you’d like to learn more.

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Reply by a searcher
from University of Georgia in Atlanta, GA, USA
Congrats, Charles! Excited to follow along. For anyone interested in investing, I've connected with Charles through a variety of avenues and I can't recommend him enough. His ability to grow a marketing company is second to none.
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Reply by an intermediary
from University of San Diego in Frederick, MD, USA
You may struggle with the 50% and 2 year 50% earn-out, unless going after distressed companies.
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