What's the minimum annualized return you need to get from a deal?

searcher profile

May 21, 2021

by a searcher in Coral Gables, FL, USA

I want to get an idea of what kind of return on investment other investors are expecting to get from acquisition targets. I know it may depend on the industry but what's the ball park return on an annual basis?

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commentor profile
Reply by a searcher
from Simon Fraser University in Ontario, Canada
Joseph, the latest Stanford Search Fund Study can be found here:

https://www.gsb.stanford.edu/faculty-research/case-studies/2020-search-fund-study-selected-observations
commentor profile
Reply by a searcher
from McGill University in Toronto, ON, Canada
There’s usually an IRR hurdle for searchers’ equity to fully vest. 35% is typical to my knowledge. Check out the Stanford studies if you want to see actual historical returns.
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