Self-funding the search, but traditionally funding the acquisition

searcher profile

July 10, 2019

by a searcher from Northwestern University - Kellogg School of Management in Boston, MA, USA

Has anyone had experience self-funding the actual search and then raising funds from traditional search investors (e.g., Anacapa, Pacific Lake, etc.) at the time of acquisition?

Curious to know if traditional search investors are open to a searcher keeping them up-to-date with their search but without committing any capital to the search?

Does this happen? How are the searcher's economics different from a completely self-funded or traditional-funded ETA process?

Thankful for any thoughts!

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commentor profile
Reply by an investor
from Stanford University in 160 Bovet Rd #405, San Mateo, CA 94402, USA
Dan, we have partnered with entrepreneurs that self-funded the search phase on a number of occasions. In every situation where we (Anacapa Partners) have been involved to date the structure at the time of the acquisition mirrored the traditional environment, including board composition and economic structure (we didn't lead every situation, so this is not purely the result of Anacapa's involvement). Happy to discuss in more detail if you are interested.
commentor profile
Reply by an investor
from Rice University in 1616 S Voss Rd, Houston, TX 77057, USA
Hey Dan - We have been investing in people to buy companies since we sold our company in###-###-#### It's the same thing we have been doing for years. Search fund is just a new name for a fund-less sponsor. www.coltoncap.com and my email is redacted We are happy to take a look.
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