Preparation steps for a search fund

September 29, 2022

by a searcher from Curtin University of Technology in Kalamunda WA 6076, Australia

In my current situation, I am the sole earner in my household while my partner is completing their degree at university, which should be completed in 18 months.

Therefore I will have to remain in my current job during that period and I will have to put my search plans on hold or conduct a part-time search as a minimum. However, I still want to remain proactive in this period and I want to prepare myself in the best way possible for the future.

Some ways I could remain proactive and prepare myself are;

1) Volunteering as an intern for a search fund.

An internship allows me to learn the steps in finding a deal, analysing a deal, and how to pitch the deal to investors.
However, I am unsure how much time an intern needs to dedicate to a search fund. Plus my location in Perth, Australia could be a hindrance due to the lack of intern opportunities.

2) Undertake a business course or accounting course at TAFE

For the American audience, TAFE is the Australian equivalent of a community college in America.

I have a degree in mechanical engineering and have been working in mining and manufacturing operations for 15-plus years. but I have no formal education in business or accounting. Completing a diploma in business and accounting will speed up my learning curve and help me identify good deals in the future.

If the search funder community has any other ideas on the other ways to best prepare myself, then I would like to hear them.

Reply by an intermediary
from University of Virginia in Metuchen, NJ 08840, USA

Although it will be hard work for some time, part time internship would be great, as there is nothing like learning by doing. It is possible that the internship might dissuade you from going into search full time or you might find the exact niche you would like to go after for yourself. Reading the recommended books and taking some online accounting courses could suffice from an education point of view at this stage in your life. MBA programs typically prepare you for employment with some offering electives in entrepreneurship, ETA etc. but owning a business is so much more about calculated risk taking and managing the risks versus learning everything before going into the real world.

Reply by a searcher
from University of Pennsylvania in Bryn Mawr, PA, USA

Before taking a big step, I'd very much agree with @Ryan Brown's recommendation to read a book or two. I've actually read both the ones Ryan mentioned and strongly recommend them. I chose them after researching some of the available literature so expect they compare quite favorably to alternatives. After reading them, i'd expect you to feel more confident in your decision and of course to be far better prepared to proceed. As an additional suggestion, to the extent you haven't already gotten 'experience shares' from acquisition entrepreneurs, that could be very helpful at this stage as well.

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