All,
I'm new to the search community and will be conducting my search while holding down a full time job. I really need to maximize my time.while cold calling and asking preliminary questions. It would be great to hear from some experienced searchers and if there is any literature out there you can recommend on the process would be really appreciated.
1.) How did you narrow industry search?
2.) Is there a company you use with quality data for outreach/cold calling?
3.) Is there somewhere I can get a list of good preliminary questions?
Thank you in advance!
Tell me about your Search Process
by a searcher
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Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
1. I had prior connections and experience in my chosen industry. However, as it turned out, it is also an industry with low multiples at the low end and high multiples at the high end. Additionally, my industry is highly reliant on recurring revenues, which can be a huge plus. Additionally, i saw an opportunity for me to innovate and improve via financial sophistication that was lacking in other smaller operations. Which let there be room for substantial growth dependent on success of me growing the acquired company (I quickly realized for my industry it would be with other acquisitions by employing a roll-up strategy)
2. I was lucky in this department since I already had plenty of connections, but I also crafted a database of leads by myself before officially searching.
3. In my experience, your preliminary questionnaire should have questions relevant to the industry that company is in. As you will be operating it and you should get a good idea of how the business looks b efore you decide to acquire it. Plus, when dealing with long-time owner operators it helps with your credibility if you ask pertinent industry questions to sellers that show you understand the important aspects of that business. Since, otherwise, you could be seen as someone who may harm their business. Why risk that when, if their business is desirable, they can wait for someone who understands their business to acquire it? Of course this just from my experience, and it may be just as likely you'll get people who are more than happy to throw their financials and taxes at you upon request hoping to get a payday in one e-mail.