In response to ^Searchfunder member‌’s recent post on inflated expectations in search, I’d like to emphasize one critical point:

if you overpay for a business, no amount of operational excellence or strategic foresight will salvage the returns. Lately, I’m seeing multiples being paid that just don’t add up. Overpaying creates a hole that’s impossible to dig out of, no matter how much value you add afterward. The purchase price sets you up with an unsustainable hurdle, and the IRR and MOIC benchmarks become irrelevant if your entry price was wrong.

Search can be a great asset class, but buying right is essential. The price you pay is the most controllable variable in any deal — get it wrong, and your returns will always underperform.

#SearchFund #PrivateEquity #ValueInvesting #DealSourcing #BusinessAcquisition