Self-funded search term sheets

searcher profile

December 18, 2023

by a searcher from York University in Toronto, ON, Canada

To self-funded searchers, curious to know how you are structuring your term sheets.

What minority control rights are you granting to investors? and when do investors loose these rights?

What are some common 'bad acts' that could lead to a searcher losing control of the board?

How is Fair Market Value being determined for Put-Call provisions?

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commentor profile
Reply by a searcher
in Philadelphia, PA, USA
Part of the beauty of self-funded entrepreneurship is that you can dictate and negotiate your own terms (within reason). I would start with this: 1) what are your "must haves" to get your deal to the finish line 2) what are you willing to give up in order to get your must haves 3) what kind of deals are you looking at (size, industry, go forward plan)
4) fitting 1/2/3 together to a win-win for everyone involved

send me a PM if you want to get into specifics
I (personally) would be wary of claims there are blanket market terms and will die on that hill :)
commentor profile
Reply by an investor
from University of Oxford in San Francisco, CA, USA
Email me at david@redacted if you want some sample term sheets.
commentor profile
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