Multiple Companies out of a singular Search Fund/Self Funded venture

by a searcher from Boston University

2 years ago

Hello Community,

Thanks for all the conversation on this platform. Past 2 weeks have been a learning journey reading your thoughts, opinions & passion for ETA. I'm an experienced founder, coming off a 3-mth sabbatical, after closing a modest exist of my previous tech startup. 

I stumbled onto SF model while building a thesis around a vertical software technology segment and I wondered if it is at all common for search funded companies to end up becoming an acquisition vehicle in adjacent tech sub-segments (if the deals & funding is attractive). I realize what I'm talking about may operationally sound like a Buyout fund, but i'm not sure if people have taken Search Fund route to accomplish this. 

Thanks

Karthik Sridhar

2 likes
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2 comments

investor from University of Miami

Hi Karthik. The short answer is yes. You can buy a company through the search fund model and continue acquiring bolt-on acquisitions under that same company. Some searchers stumble upon the roll-up model after they acquire their first company and others set out to do roll-ups from the beginning. If you have an attractive industry, a synergy thesis that makes sense, and targets identified, you can definitely set out to do a roll-up from the start. Happy to chat more about this. Feel free to DM me!

2 years ago | like reply | 0 likes

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