Very Low Hanging Fruit for Searchers

June 08, 2023

by a professional from York University in Toronto, ON, Canada

Some maybe obvious low hanging fruit adapted from candid advice I gave a searcher:

1. Incorporating a Legal Entity for Your Search - If you don't form a corporation or other legal entity for your search, you're sending a strong message to brokers, bankers, and advisors that you're not serious.

On one hand, you're embarking on a long-term mission to invest millions of others' capital to buy a business but on the other hand, you want to avoid the small expense of forming an entity. Do you see the incongruency?

2. Get a Website - tied to point 1, a simple, refined website is necessary to convey commitment. It does not have to be expensive or fancy. Just something that conveys who you are and what you're looking for.

3. Know What You're Looking For - You'll likely cast a wide net early on in your search: "any industry, anywhere, any level of EBITDA". Over time, you should narrow your parameters and keep people in your network updated on your revised criteria. This helps us keep you in mind for any opportunities that fit your criteria.

Here's my process when I get sent an opportunity:

a. What are the high level characteristics of this opportunity (industry, geography, EBITDA)? b. Who in my network would be interested in this? c. Send the opportunity to people I think would be interested

If your criteria is "anyone, anywhere, anytime", it's hard for people with deal flow to keep you in mind. Time is precious and we don't want to waste anyone's time sending out irrelevant opportunities.

It might seem obvious but you'd be shocked how often searchers leave this beautiful fruit to wither on the branch.

Reply by a professional
from York University in Toronto, ON, Canada

^redacted‌ Thanks for sharing your experience Joe and congratulations on your closing. Of course there are exceptions. My view is that the costs of entity + website are low relative to the potential downside.

"I did however register a domain and set up an email ID because that was the part that brokers etc. see." - One comment on this: brokers, financial partners, advisors, etc don't just see email. They see everything. They will check if the domain has a website attached to it. They will check your social media accounts. They will check where you're mentioned on the Internet. All to establish things like credibility, professionalism, and integrity.

Reply by a searcher
from Indian School of Business in Raleigh, NC, USA

I just closed my first deal in 7 months with no entity till I needed it. No website. Never felt like I missed any of it other than once when a fellow searcher asked me for my website URL on searchfunder. I was grateful not to have formed the entity because I would up acquiring in a different state than I originally intended. I did however register a domain and set up an email ID because that was the part that brokers etc. see. This was a self funded deal however - no investors.

+1 more reply.

Join the discussion