Self-funded vs. funded searcher economics?

by a searcher from Ivey Business School at Western University

3 years ago

Is there a rule of thumb for searcher economics between the two models? I know it can vary widely but curious if there's an "accepted" industry minimum for a self-funded deal, or if it truly just depends on the situation.

6 likes
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7 comments

professional from Embry-Riddle Aeronautical University

Either way, please assemble a board, it lonely at the top! A wise man will listen and act on advice of his peers.

3 years ago | like reply | 3 likes

investor from University of California, Berkeley - Haas School of Business

The difference with bigger deals is that you have more optionality as a self-funded searcher. There is a large number of potential capital sources once you have a deal with > $2M in EBITDA. You can talk to a lot of investors and find the best fit for yourself. The other big difference is control. With the self funded model you can usually keep control of the company if you go with SBA financing. With the traditional model, you are essentially an employee working for your investors.

3 years ago | like reply | 3 likes

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