Only been involved with Search Funds and entrepreneurial acquisitions for a few months now, interested in Germany in particular. It seems many Search Funds in Germany manage to raise search capital quite quickly, but the rate of non-acquisition is very high it seems.

from what i have heard there were at least 4 or 5 that did not manage to acquire in the last 5-6 years. And rumours are 2-3 further ones are shutting their current searches down soon. On the acquisition side there have only been 4 or 5, so less than 50% of raised funds didn’t acquire.

what are the reasons? It can’t be the economy as its been quite strong. Nor covid. Is it age of searchers (too young) as perceived by sellers? competition in buying too high? „Flawed“ local investor base? Wrong talent/searchers? It is not a lack of availability in bank debt.

very curious to hear what you all think. Subjective views and hypothesis very welcome.