Does having a buy side advisor make sense for a self funded search?

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January 26, 2024

by a searcher from Louisiana Tech University in Orlando, FL, USA

For many people in the ETA space, myself included, the sourcing piece of the puzzle is a major challenge. There are definitely deals to be made in publicly listed and brokered deals, and the brokers themselves play a huge part in getting a deal closed, but most don't pencil. Proprietary search is all about consistency and creating a process that allows many touch points for prospective sellers. With the right resources and time horizon I do believe that this deal flow strategy is superior, but for people who are just starting out it is typically a 1 or 2 man show. Would love some feedback on whether or not it would be worth it to engage in a buy side arrangement for deals under or up to $1m in EBITDA, as well as some comments for people who have done so and what their thoughts are looking back on the process.

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