In The Trenches Answers to Recurring FAQs from Current and Prospective Searchers
7 snips
Feb 29, 2024 Covers how to construct a cap table and why investor diversity and availability matter. Compares Canadian and US search fund ecosystems and whether the market is crowded. Debates price versus business quality and tradeoffs between proprietary and brokered deal flow. Discusses when to visit sellers, focused versus agnostic searches, and how to spend the first week as a new CEO.
AI Snips
Chapters
Books
Transcript
Episode notes
Use Investors As Time-Saving Advisors
- Leverage engaged investors early by sending concise memos to get rapid feedback and avoid wasting time on poor opportunities.
- Use investors to surface questions, provide red-flag checks, and save search time.
Combine Proprietary And Broker Sourcing
- Run both proprietary outreach and brokered processes; proprietary offers off-market advantages but is time-consuming.
- Use broker deals for speed, practice, and reliable sellers while mining SIMs for industry ideas.
Visit Sellers Only With Key Info
- Only visit a prospective seller after you have solid financials (ideally 3 years) and reasonably aligned valuation expectations.
- If valuation is materially misaligned, skip the trip to save time and money.
