Solo vs Partnered

by a searcher from University of Pennsylvania - The Wharton School

Mar 26,2023

Hi! First time searcher here.
Curious if anyone has a pov on going it alone vs finding a partner.

And if partnered, how important is it that you have a long personal history with that person? How important is it that you have different skill sets? Etc.

How should I be thinking through this?

Thanks for the advice!

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14 comments

searcher from University of British Columbia

Man what a great take Dustin, incredibly valuable input here! Could you elaborate on why capital was difficult to come by? Was it deal related or other?

05/11/2023 | like reply | 0 likes

investor from McGill University

There are a lot of really great takes on this thread. One important consideration you may want to contemplate is your economics. In a partnered search you will max out your equity at 15% (vs 25% in a solo traditional search). Moreover, when you ultimately find a business, it will have to absorb two big salaries, instead of one (that negatively impacts cash flows). As a result, this creates incentivize for partnered searches to go up-market. That isn't a bad thing, per se. But, you will have fewer targets to go after, and it gets a lot more competitive too. So, the open ended Q is whether a partner will mitigate or amplify risk? If you decide to partner with someone, make sure you are aligned on geography, industry, risk/reward, what each of you will do once you enter the business, and whether your skills compliment one another.

04/12/2023 | like reply | 0 likes

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