Did any of you raised / saw a 3 searcher searchfund ?

September 18, 2023

by a searcher from IE Business School in France

Hello everyone,

I am trying to understand the main objections for started a 3 complementary searcher searchfund.

As advantages I currently see:

One more person during the search
One more exec operator (for which the incentives are completely aligned)

As disadvantage, I currently see:

Higher risk ask 3 serachers probably means degrading EBITDA from day 1 (seller's salary probably can be split between 2 searchers, but not 3)

Any thoughts / feedbacks ?

Reply by a searcher
from TELECOM School of Management in France

a 3-searchers team with complementary skill set makes sense specifically in a very focused search, say you are targeting an industry where the skill set makes it very interesting in terms of "lowering the execution risk" for the investors. Track records of operational experience shared by the 3 searchers would also help. Otherwise you potentially create yet another HR integration risk on top of the existing ones.

Reply by a searcher
from EDHEC Business School, Lille and Nice in Paris, France

great success story about a 3 searcher Search Fund

+2 more replies.

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