Hey folks,
How are you thinking about how COVID-19 is going to change the length of your search process?
Stanford Selected Observations indicate that the average length is ~19 moths (23 months in###-###-#### How are you thinking about (a) the additional months of downtime with slow transaction volume, (b) the time it takes after that for sellers to readjust their valuation expectations, and (c) the possibility of any additional lengthening in the sourcing or diligence process?
Based on that, how are you thinking about your own runway and cash burn for the search dollars you raised?
Thanks!
Connor
Search process timeline + cash burn impacts of COVID-19?
by a searcher from Stanford University - Graduate School of Business
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Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
I would recommend saving as much as possible now, planning to have enough budget to extend your search at least to the same amount of time as the lockdown period.
On the other hand, a lot of research can be performed now and several potential targets could be studied, so you can be ready to be the first to engage when all settle down. It is a challenge for us as well as it is for the rest of the world!