Target Statement / Introspection Pre-search

October 09, 2023

by a searcher from Trinity College Connecticut in Boston, MA, USA

Hello everyone - I have plans to kick off a self funded search in the near future, and in an attempt to ‘work smarter not harder’ I’ve asked a number of current and past searchers what they feel their biggest time wasters were during the process. Most said they wish they had done more introspection up front.

So, here's my question: what should a searcher have ‘figured out’ prior to starting the process?

My initial thoughts are mainly based on the Buy Then Build Target Statement model:

-What type of company? (Product, Distributor, Service)
-What type of opportunity? (Eternally Profitable, Turnaround, High Growth, Platform)
-Size? (SDE/EBITDA range)
-Geographic Preference?
-Industries you will NOT work in?
-What you want your daily activities to be as CEO / what are your core competencies as a leader?
-Does your family/spouse REALLY understand this venture? (this came up quite a bit!)
What edits would you make and what am I missing?

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

I was just at the SIG conference and one thing that came up quite a bit was not pigeon holding yourself to one industry. If you do so it may be a bit like looking for a needle in the haystack and you might miss out on other good opportunities that might be a great fit for you.

Outside of that, the other thing I would work on is getting your financing pre-approval done and being sure you understand your various financing options so you know how to put the capital stack together. Also understanding where your equity is coming from is important as well.

If you need any help on the debt side feel free to reach out to me here or at redacted Good luck with your search.

Reply by a searcher
in New York, NY, USA

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