WHICH COMES FIRST - CAPITAL PARTNERS OR A GREAT BUSINESS?
This feels like a chicken and egg issue.
I am not particularly good at capital raising - I have long known this, despite lots of experience in that role - I started along the search path at the beginning of the year with the hypothesis that good businesses and strong executive experience would attract capital. That is not playing out.
I have been unable to close on several promising businesses because I could not attract sufficient capital in a timely manner to get deals done.
That has me thinking, I need to solidify capital relationships before finding businesses, but every capital partner I am talking to is asking about the business I am looking at. I am using some of the missed businesses as analogs and uniformly I am hearing they would have been interested in those types of deals. Yet when I actually had the fish on the line and it was time to reel it in, I got almost no response from many of the same types of firms.
I don't know if I am not bringing the right deals to the table, or am packaging them wrong, or approaching the wrong investors, or have unrealistic expectations etc. I am getting no feedback or signals from investors on why they are passing.
Reading through the forum, I seem to be doing what others are struggling with, finding attractively priced businesses with strong growth potential. I am striking out on the capital though.
How do I best address my funding issues so I can confidently move forward on future businesses with a strong expectation of ability to close?
About me: Chicago MBA, seasoned entrepreneur and executive, CEO experience, operating partner role at large PE firm, have grown two businesses by more than $100 million in annual revenue, self funding search and have ability to co-invest.