Looking to connect with searchers

searcher profile

January 25, 2022

by a searcher from Lousiana State University in Houston, TX, USA

Hi,

I am looking to connect with searchers who have successfully raised a traditional search fund with a metro focus and a surrounding radius, say###-###-#### miles. I've gotten mixed feedback if this is possible. However, the metro area I am considering is top 5, and 2 other large metropolitan areas are within 180 miles. Various studies indicate that ~30-40% of searchers acquire near their search location or state. Also, many searchers say a narrow focus or sniper rifle outreach approach is superior, but this is up for debate.

I will reach out to anyone willing to chat on this topic.

Thank you.

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commentor profile
Reply by a searcher
from University of Florida in Boynton Beach, FL, USA
Hey David - I briefly explored this about 2 years ago, for a statewide Florida focused traditional search. I ended up waiting a couple years and am now doing a self-funded search, but at the time I socialized the idea with a handful of folks in the community and the general feedback I got was lukewarm. It sounded something like this:

While the geographic focus may have plenty of merit, and may actually be a great way to conduct your search, the small community of search investors generally doesn't like it, and it may be a non-starter for many of them. But that doesn't mean you can't pull it off.

The main issue is deal flow. There are only so many companies of traditional search size. Even if you're searching an area home to 10% of those businesses, you just cut your deal flow by 90%. Most folks who do geographic searches are self-funded and targeting smaller businesses, which works because there are so many more small businesses. Happy to chat if I can help.
commentor profile
Reply by a searcher
from The University of Chicago in Chicago, IL, USA
Agree with Peter, but will note that it seems the tide is (slowly) turning on geographic searches given the statistic you mentioned in your post (and maybe the increased bargaining power of searchers given the $ in the space). I have spoken with a handful of investors who were willing to consider backing a geographic search, but generally with the caveat that the searcher only primarily - not exclusively - look for deals in that area. Rather than simply asking investors whether they would hypothetically fund a geographic search (because many will say no regardless), I would formulate a solid plan first and research the market you're considering so that you have hard data to prove your claims about the size and opportunity.
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