Pros and cons of staying in a job while searching versus a search fund

April 13, 2020

by a searcher from University of Arkansas at Fayetteville in Memphis, TN, USA

Why would someone not stay in their current position or seek a good position while searching rather than launching a search fund?

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Reply by a searcher
from Texas A&M University in Dallas, TX, USA

As I understand it, most independent searchers are successful around their third LOI. Due to the number of variables necessary to reach LOI, the general thought is that volume is necessary to find the company that is right for you. Because of that, most people think it would simply take too long (3-5 years+) to find a company that meets their criteria. (Most independent searchers plan on 18 months to two years). What more, once you are serious about a company you will have to dedicate a significant amount of time in order to reach close. This might not be doable if you have a day job, but that might vary depending on your job... Hope that answer helped give some insight into the general perception of part time searching.

Reply by an intermediary
from Boise State University in 800 W Main St, Boise, ID 83702, USA

If you have the resources to quit your job and look for a business for two years, great. When you have an income, you can make more of a rational business decision. When your resources run low, you may find yourself settling for something just to get it done. As a business broker, when I know someone has a limited time to make a decision, I see a very motivated buyer. A motivated buyer and a motivated seller (with their own 'pain points"), will make a deal. Buyers without a good reason to buy are perpetual "shoppers". Always looking, never buying.

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