Partial Acquisitions

September 14, 2024

by a searcher from Temple University - The Fox School of Business in Philadelphia, PA, USA

I have come across a few deals where the sellers just wanted to take some money off the table, but not sell a majority of the company. I have passed on them, however, if you believe in the owner/operator, I would think these are still good investments. You could also possibly earn a consulting fee and have a ROFR when they decide to sell.

What are your thoughts? Are there investors out there that have looked for a portfolio of partial acquisitions without a searcher?

Reply by a searcher
from Carleton University in Calgary, AB, Canada

I agree with Joel... minority deals are often risky. But to your point, Daniel, we can sometimes get comfortable with them under the right circumstances. If you come across any that are interesting, feel free to send them our way, and we'd be happy to pay a referral fee (email = redacted

Reply by a professional
from University at Albany, State University of New York in Delray Beach, FL, USA

Daniel - I have clients that buy majority control and are willing to leave sellers who remain with the business (and sometimes, who don't remain) with some equity. However, buying a minority interest in a private business... wouldn't generally do or recommend for many reasons.

+3 more replies.

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