Why are recent search funds failing to acquire companies?

by a searcher

3 years ago

Seems like theres a higher percentage of traditional search funds these days failing to acquire companies. Is there any particular reason why (more competition from LMM PE funds?). 

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8 comments

professional from Rutgers, The State University of New Jersey - Newark

unless you have bought a company or sweated a payroll the odds are against newbe search funds. Every deal has has black holes and unanswerable questions that freak out educated book smart investors.You need nerves of steel.

3 years ago | like reply | 2 likes

professional from Ecole Supérieure de Commerce de Bordeaux

Search funds are also competing against independent sponsors (a more flexible model) on LMM deals.

3 years ago | like reply | 2 likes

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