Questions on Holdco equity structures

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from Southern Polytechnic State Univerisity
in Clarkesville, GA 30523, USA

2yrs ago

Questions on Holdco equity structures

I currently own and manage a B2B service company with a partner. We're rapidly growing and potentially taking on investment. We also have a small add-on acquisition we're looking at.

My thought is to create a holding company that my partner and I own 100%. I assume the Holdco would own minimum 51% of the original B2B service company and allow the remaining 49% for potential investment funding equity. And then do the same for the add-on acquisition.

Is my thinking correct on this? And how is this structure viewed by potential investors to the subsidiary companies?

3 Likes

333 Views

reply by a searcher 2yrs ago
in Rindge, NH 03461, USA

Luke, Congratulations on your growth! And also on the plan to acquire come companies. There are multiple ways to structure these kinds of deals. To give you the best advice, I would need some more info on what you are looking to achieve and what you need the money for. There may be ways to do this to avoid taking equity investors altogether. Happy to talk when you have a minute. Hit me up at redacted Sven

reply by an investor 2yrs ago
from University of Oxford in San Francisco, CA, USA

Partly agreed. The core reason 'traditional' search persists is the number of frequently younger folks who need not just money but security, help and a map through the early stages. Perversely that's another reason I & most of my investor network only invest in self-funded investors - somewhat worse terms but (flow of pre-baked deals and) typically even more mature/capable folk.