I am doing a self-funded partnered search and we are now ready to begin reaching out to potential investors as we simultaneously begin looking at deals.
I have an existing relationship with most of my target investors (not introducing myself or sharing background for first time) and it would be helpful to hear from other self-funded searchers and investors on what worked well (and didn't work well) for you during those initial conversations and up through signed LOI.
I've compiled some topics below of what I would like to hear as an investor and would greatly appreciate feedback and comments!
- Search criteria
o What part of the process we are at today
- Vision Casting
o Where do we see this going 3,5,10 years from now
- Discuss our expectations from investors and what we are looking for
o Ideal number of investors (i.e. 3 vs 20)
o Active vs. Passive role / Board roles if any
o Capital commitment
o A couple key items in the (eventual) agreement that are important to us and why
- Target returns/exit plan
o General target IRR but since we can back into that focus more high-level on MOIC & investment time frame
- Investor expectations
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