Intro: E-Commerce Focused Search Fund Seeking Capital & Deal Fits

searcher profile

February 10, 2021

by a searcher from University of California, Los Angeles in San Diego, CA, USA

Hi all! It's a pleasure to join you here.

My business partner and I have been providing strategy consulting for e-commerce companies, and have discovered that we're best positioned for effectiveness in ownership/operational roles instead of operating as outside advisors. We take a data-driven approach oriented at revenue growth by increasing customer LTV and decreasing acquisition costs, and full implementation requires a careful alignment of go-to-market strategy and operational execution. Our advice often contradicts the intuition of our clients' key stakeholders (who are typically founders who are deeply emotionally invested in their business' strategy), and their resistance to implementation has proven challenging.

In order to fully realize the potential of our strategies, we're aiming to acquire outright (or, at least, majority) ownership in D2C e-commerce companies with six-to-seven figures in revenue. Though we're open-minded to smaller businesses with the right contours, our model proves most effective with established businesses with a commercial history of 12+ months. We're industry agnostic – companies that fit our mold can exist in nearly any market segment.

For the Searchfunders group, we have two major asks:
- If you're connected with a company that's looking to exit and meets the broad contours above, I'd love to connect and learn more.
- We're also seeking capital to fund our search – and, ultimately, these acquisitions. Based on our work thus far, we're eyeing acquisition opportunities that project significant growth potential – 30-50% IRR – and an exit timeline of 2-4 years. If you're interested in connecting directly, or serving as an intermediary, we're happy to provide more details behind our thesis and these projections.

Alternatively, if you're operating a D2C e-commerce company, we're also available for advisory work.

As for our backgrounds–my business partner comes from an e-commerce revenue strategy background – he most recently guided a D2C apparel company in quadrupling its revenue and breaking the 8 figure threshold in under a year. I've been a client strategy executive at a digital agency for the last few years (primarily guiding Fortune 500 brands) and managing aspects of our internal operations. Through our careers, we've built relationships with skillful operational experts in supply chain, customer acquisition, and other key fields who we've brought in as experts in our consulting work – and aim to do so in an operational capacity, too.

Excited to meet you all, and looking forward to working with you!

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commentor profile
Reply by a searcher
from Stanford University in San Francisco, CA, USA
Is your strategy to find an early stage unprofitable business that is growing rapidly, make acquisition more efficient, and bring to profitability / lower growth? Or find a more mature business that is profitable or close to but not growing, reinvest or pivot strategy, and bring back to growth / burn?
How much capital do you have to spend / valuation multiple you're looking for?
commentor profile
Reply by an intermediary
from University of Western Australia in London, UK
Hi Phil, happy to help or give advice. I'm immersed in this space (we specialise in e-com M&A). It's a seller's market at the moment, particularly for Amazon focused businesses with certain characteristics. Your remit sounds broader which should make acquisitions slightly less competitive (but only slightly)
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