Searcher Expected Returns

searcher profile

October 18, 2023

by a searcher from IESE Business School in Toowoomba QLD, Australia

Does anyone have a model they would be willing to share of their expected returns/cashflow as a searcher, e.g., if you take a typical deal size and exit structure (or better yet scenarios with potential exit structures), what the expected returns would be for you as a traditional searcher?

As a bonus, has anyone done this to compare traditional vs. self-funded search options?

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commentor profile
Reply by a searcher
from IE Business School in Milan, Metropolitan City of Milan, Italy
For traditional search fund you can find a model here [ https://docs.google.com/spreadsheets/d/1o8ZOiIhflXzIfbkif58jEqndy_ixfjWImBOxjIc9TnU/edit?usp=sharing ] with its step-by-step guide here [ https://www.toptal.com/finance/private-equity-consultants/search-fund-investor ]
commentor profile
Reply by a searcher
from Columbia University in Los Angeles, CA, USA
wouldn't this also be fundamentally predicated on cash-in/leverage? capital stack will be so fundamentally important in dictating this. There are also some unique circumstances wherein returns are infinite if its $0 equity transaction.
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