Traditional Search vs Self-funded question

searcher profile

June 29, 2023

by a searcher from Georgetown University - The McDonough School of Business in Washington, DC, USA

If you’re doing a search (not traditional), do you still have to parade the around to ie. 10 investors or technically could you just present it to 1-2 to cover the whole acquisition?

I've found that many searchers will take 2-3 years or never acquire a company for this reason (having to parade the deal around to many different investors and then can never get all of them onboard for that particular deal for different reasons). If anyone could share their thoughts regarding this it would be really appreciated

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Reply by a searcher
from University of Southern California in Las Vegas, NV, USA
You are correct. The self funded search requires no investors up front. You do need to cultivate investors and lending sources prior to LOI. I've sourced both for a few deals. It's easier to get funding once you have the numbers of the deal already set. It makes it pretty black and white. The only catch is that you will need money to live to self fund or at least a spouse who can support you both during the search.
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