Search Fund Board of Directors

searcher profile

May 12, 2022

by a searcher from Keller Graduate School of Management of DeVry University in Centennial, CO, USA

Hi Searchfunder.com community!

I had an interesting call with a person in the acquisition space and was asked if I had a board of directors helping me with my acquisition plan. It was a very interesting question, one that I have not received, and thought I would ask the community. Searchers do you currently have a board of directors for your search entity? For searchers who have successfully gone through this process, is this something a searcher should have?


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commentor profile
Reply by a searcher
in New York, NY, USA
Honestly, and I don't mean to be vague here, but it depends on you and your goals. I'll disagree with much of what is posted above for my particular situation: I am *very* interested in surrounding myself with incredible talent in the form of an BoD. I could spend my whole life trying to acquire the knowledge they cumulatively have, and never get close, or, I could engage them as directors, compensate them with equity, and have an enormous (and incentivized) wealth of knowledge, with tons of contacts to draw from, focused on my particular venture, available to me at all times. If you don't know how to do something -- find someone who has been there, and done that 1000 times before, and see if they're interested in adding value as a director in exchange for some equity. Just my 2 cents, but again it depends on you and where you want to go.
commentor profile
Reply by a searcher
from University of Florida in Miami, FL, USA
I agree with both comments above—at the end of the day, what matters is that you have a solid sounding board to help you pick up on things you may have missed during seller conversations, investment thesis development, diligence, structure, etc. These folks don’t need to be part of a formal board, but rather people in your corner that you can trust will ask you the tough questions as you’re going through the search process
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