Searchers Willing to Talk

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October 25, 2022

by a searcher from Carnegie Mellon University - Tepper School of Business in Toronto, ON, Canada

Hi everyone,

I am interested in starting a traditional search in the next 1-3 years, but not sure when would be a “good time”. My biggest concern is not being able attract investors because I do not have strong operational management experience unlike many other searchers. I have 5 years of experience in accounting pre-MBA and will be working as a consultant post-MBA.

I would appreciate any searchers (current or former) who would be willing to share their experiences with me! Please shoot me a message if interested.

Best, Jiaxiang

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commentor profile
Reply by a searcher
from University of Pennsylvania in Philadelphia, PA, USA
29% of searchers raise a fund immediately after (<1 year) graduating from an MBA; 26% 1-3 years post-MBA; and 19% 4-7 years post-MBA. Another 19% raise without an MBA at all. (GSB 2022 search fund study)

The unsatisfying but honest answer I've gotten from speaking to other searchers / funders is "raise when you feel ready" - don't feel pressured to raise right after graduating. Looking at the data, there's clearly a sweet spot between 0-4 years post-MBA. More important than timing is to have the right mindset heading into your search given the difficulty of searching. Eventually the marginal benefit of additional experience is outweighed by the marginal cost of waiting, especially when you factor in non-career priorities like family as you grow older. At some point you just have to send it.

FWIW while you're still in school it's a good idea to build a network of search fund investors now while you have the time and resources available.
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Reply by a searcher
from Purdue University in Los Angeles, CA, USA
This very topic came up today at the Chicago Booth ETA event. After a panel comprised of people who had very successfully executed the search-acquisition-exit round trip, It didn't seem that all of the panelists had a demonstrated business success track record. prior to their search. I asked several investors at the conference - wouldn't this have been a concern.? The general consensus was no. Among the reasons, was that the investors valued the degree in the field of study and the demonstration of other types of success in the searcher's life as well as, their confidence in the business case put forward.
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