Choosing a search location

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October 26, 2019

by a searcher from Northwestern University - Kellogg School of Management in Tampa, FL, USA

I've heard various thoughts about the importance of where you choose to base your search. One belief is that you are more likely to buy something within driving distance of where you are searching. That seems logical given it would be easier / quicker to visit a business that comes to your attention and opportunities could arise through your local network. If you believed that, and had a strong geographic preference, it would make sense to search from close to where you hope to end up buying a business. But if you're truly doing a national search, it seems like it would make the most sense to search near a good (hub) airport. I also sense that most people who are doing a "national search" tend to have some measure of location preference. Does anyone have thoughts about the importance of search location as a factor in where you ultimately end up? I'm weighing the value of moving to "somewhere we'd rather end up" to search, as opposed to staying put under the assumption that we'll probably have to move a second time whenever we find a business anyway.

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Reply by a searcher
from IESE Business School in Denver, CO, USA
I have also heard raising capital for a regional search can be tough. I'm doing a partnered search and we are each in a different city and searching nationally. That way we can cover as much ground as possible. Some investors have not liked that idea much but for most it hasn't been an issue and seems to be more common place now for partnered searches.
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Reply by a searcher
from Northwestern University in Chicago, IL, USA
I have been asking myself the same question, Dan. I have been leaning toward the idea of living nearby a place 'we'd like to end up' to increase the likelihood that the acquired business is in fact in or nearby that area. Worst case, you move elsewhere anyway but will have had time in an area you enjoy in the meantime.
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