General question

searcher profile

July 04, 2021

by a searcher from University of California, Riverside in Rancho Cucamonga, CA, USA

I have been putting a few pieces of this search fund puzzle together. So from what I am understanding; After we form a legal entity, we write the ppm with all the (who, what and how) information of the target business. Then we put on our best Oliver Twist and approach investors for backing with option to invest more later. This amount we raise more than likely would satisfy the equity contribution for a bank loan, correct? Also industry experience, how does that factor? My industry experience is all in transportation which is what I want to acquire anyways. Anyway thank you in advance for any insight.

0
4
209
Replies
4
commentor profile
Reply by a searcher
from University of California, Berkeley in Dallas, TX, USA
Hey Andrew, two things I’d recommend as you look to piece this all together: read this book:
Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game https://www.amazon.com/dp/###-###-#### /ref=cm_sw_r_cp_api_glt_fabc_GY5E0QHQRHYN2KGXFQGV

And read the Stanford search fund primer. https://www.gsb.stanford.edu/faculty-research/centers-initiatives/ces/research/search-funds/primer
Reading both these resources will help you decide where you might fit into the ecosystem, from traditional funding to self funded.

Also sit on every webinar you can find.
commentor profile
Reply by an intermediary
from Northeastern University in Boston, MA, USA
good advice from Joe. Once you are funded, you may want to join Successionmatching.com as a VC member (free sign up). DM if you want to connect
commentor profile
+2 more replies.
Join the discussion