What is the Smallest Self-Funded Search "Worth" Doing?

by a searcher from Indiana University, Bloomington/Indianapolis - Kelley School of Business

Apr 23,2021

17 likes
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31 comments

searcher from University of California, Berkeley - Haas School of Business

Thanks all--appreciate hearing the nuances of these smaller deals.

04/29/2021 | like reply | 0 likes

searcher from The University of Texas at Austin - Red McCombs School of Business

I feel like I'm missing something with deals under $400k SDE not being able to support the debt service/growth. Could someone please explain where my back of the napkin math is off?

- 300K SDE at 2 turns is $600k purchase price
- If you put down 10% a 7% note, the yearly debt service is about $77k.
- Even after you pay yourself say $100k in total comp, you have $123k funds to invest in growth

04/25/2021 | like reply | 4 likes

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