See a scorching evaluation of search funds.

professional profile

July 19, 2022

by a professional from University of Southern California - Marshall School of Business in North Palm Beach, FL, USA

Don’t blame the messenger. That’s me. “Search Funds - The Good, The Bad, and The Ugly” https://www.corumgroup.com/insights/search-funds-good-bad-and-ugly

Up to now, I’ve only shared a link to a broker website that boldly warns: NO SEARCHFUNDS.

BTW, some of what the marketplace is saying will be covered during my July 28 Zoom:

FREE Q&A Roundtable - Let’s Demystify Pre-LOI Due Diligence

Defective Pre-LOI Due Diligence Enables Dumb Deals. It’s why so many searchers can’t make a deal, or they buy the wrong businesses, or they buy the right businesses the wrong ways.

Sign up now for this free one-time, small group, Zoom meeting. Registrants can submit questions or comments before the event to assure coverage.

Required: Advance registration (passcode for entry). https://us02web.zoom.us/meeting/register/tZ0uce6hqT0qEtIjsnmFY7yjSFq1Y1eVbHWM

This event is free. Otherwise, private, individual, consultations at $250/hr.

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commentor profile
Reply by a searcher
from Boston University in Cupertino, CA, USA
I'd like to think this a function of the volume of activity. As the total # of searchers grow (which is happening) all connected agencies in any deal will see a high volume of searcher queries. Since searchers don't come from a primarily "deal making" expertise, the quality of searcher-agency/seller interaction, will be lower and that is being seen as a negative here.


As with any growing community, there will be times of high and low quality. Not all ideas/entrepreneurs during the dot com boom were fundable. Search will go through the same - and it will be for the better.
In fairness the author saw the good - which is all what we need to focus on.

IMHO, searchers should refrain from tire-kicking. That doesn't help anyone win - that's a bigger "ugly" than double diligence.
commentor profile
Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
Paying attention to the elephant in the room.

It’s important, for what we’re up against, to anticipate and see the elephant in the room, before we spend time and money, isn’t it?

What the “scorching” article warns is one of the elephants.

Every day I think about my elephant, which stamped me into #*>?%.

It caused me to pay better attention to what some of us don’t see, which can adversely affect us.

That’s when I went from being a naïve searcher and business buyer to finally making worthwhile deals.

Yes, my first acquisition was a disaster. It’s a good story about my incompetent search, my bad investment, and getting back at the people who cheated me. And never to be repeated.
commentor profile
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