Is it too late to start a searchfund?

searcher profile

August 26, 2021

by a searcher from Brigham Young University in Kahului, HI, USA

Acquired a company in December as a self-funded searcher and it is going well.

Looking for the next opportunity, with a few potential targets already in sight. Is it too late to start a searchfund or is it too late in the process to be attractive to investors? Interested in supplementing the search, and building relationships prior to funding round.

Targeting smaller service based, monthly contract or construction service businesses (based on prior experience) with multiples in the###-###-#### range.

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commentor profile
Reply by a searcher
from University of Pennsylvania in Dubai - United Arab Emirates
Are the the new targets are related to your initial acquisition? If so then it would make sense to raise money through that vehicle to fund the add-ons. I would also look at debt for the funding. If it is an entirely new venture then i think you will struggle to attract investors as they will look for you to focus on the company they back you to buy and your current company could be seen as a distraction.
commentor profile
Reply by an investor
from IESE Business School in Paris, France
In my opinion it's never too late to raise capital based on a successful acquisition and a nice buildup plan. It will not be a traditional searchfund and you need to think how you are going to bring, in a global deal for investors, your already acquired company. Make it attractive and investors will follow.
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