What is a good company size to launch first search fund?

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May 29, 2021

by a searcher from Universidad Panamericana in Guadalajara, Jalisco, Mexico

Do you think that there's a minimum size for a first company to be acquired? My intuition is that there should be at least a common practice or rule of thumb, perhaps a very small company is not worth taking on all the work of LOI, DD, etc. Would like to hear your thoughts about this.

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Reply by a searcher
from Southern Methodist University in Dallas, TX, USA
There is no defined thresh hold for company size as EtA is a case-by-case basis, dictated by opportunity cost and goals. If you plan on pursuing an aggressive growth plan, or filling out the org chart, I would recommend an EBITDA of $500K or more.
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