Partnered Self-Funded Search while W2’d

searcher profile

September 11, 2024

by a searcher from Case Western Reserve University - Weatherhead School of Management in Cleveland, OH, USA

A partner and I are looking to structure our search together. We took a class on ETA during our (PT) MBA and were in the same small group within our cohort together. We have reasonably successful careers and have options waiting to vest to help fund a search. We have been meeting mentors/investors, reading books, and listening to podcasts surrounding search but we’re beginning to feel lost in our approach. Would love to talk to someone who hits the criteria in the title: Partnered, Self funded, while W2’d - in order to get some advice.


If you hit this criteria would love to catch up, or if you’re in professional services surrounding ETA and could help us understand next steps to take would love to discuss further.

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Reply by a searcher
from Biola University in North Tustin, CA, USA
Hey ^redacted‌, I am a solo SF with a FT W2 and been at it for 10 months or so. While I don’t have any real successes to point to relative to actually closing a deal, I can share some opinions for your consideration. 1) get very clear on your buy box and objectives and list the top 5 or so must have criteria when evaluating businesses; 2) develop a spreadsheet or whatever to quickly drop in key data (revenue, EBITDA/SDE, net income, 3-5 year and TTM growth, etc.) to help you determine cashflow and DSCR so you can quickly screen keepers and throwbacks; 3) get used to talking to sellers and finding their “why” (takes some saddle time); 4) develop your LOI template that you can easily tweak and submit if deal meets ~80% of your criteria; 5) move fast because good deals go quick; 6) get your funding and finances in line ahead of time so you can move fast and establish relationships with your lender(s)/investors to minimize delays, a good business plan, personal and professional (tailored to your search) overview including a personal financial statement should help them get to know you; 7) carve out 1-2 hours per day searching, whether through brokers, boards or proprietary, as well as networking with as many fellow searchers, investors, brokers, wealth managers, accountants, etc. as you can (consider joining a local networking or meetup group). Other than that, wishing you and your partners good fortune. Thanks for the tag ^redacted‌
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Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
The easiest solution is to get out of the city where the river catches fire!!!!
My first job was in Cleveland (Euclid). Took me a while to understand river on fire.
Anyway, most my buyers have been W2 during search, no outside investors, and have left W2 after finding a business.
Happy to talk.
Here is a case study
https://yale.app.box.com/s/18litnbg8y8deyk2911nlcdgx5zvtnju
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