Search Fund Name | "Capital" vs. "Acquisition Corp." for Solo Search

March 27, 2021

by a searcher from Harvard University - Harvard Business School in Victoria, BC, Canada

After investigating a little, it appears that the vast majority of search fund names end in either "Capital" or "Partners"... As a solo-searcher, I feel that "Partners" would create more conversational problems for me than it would solve, and Jim Stein Sharpe makes a pretty strong case (link below) that "Capital" could result in sellers assuming that my pockets are deeper than they are or that my attention will be divided among a portfolio of companies (which it won't).

Is anyone aware of alternative naming conventions that would be more seller-friendly?

One idea that I've considered is using "Acquisition Corp.", which is still more formal than I'd like, but at least it's singular and could be explained as an investment vehicle to acquire exactly one company to personally run. An added bonus, beyond being potentially less confusing perception, is that it would be much, much easier to register a corporate name and web domain if I avoid the herd.

Context
I am in the early stages of brainstorming corporation names for my search fund (in Canada in case that matters).

Referenced Blog Post
https://jimsteinsharpe.com/searchlaunch/naming-your-search/

Reply by an investor
from Dartmouth College in 80 S Main St, Hanover, NH 03755, USA

While agreeing with some of the other comments that it may not end up mattering much, when trying to differentiate, you only get one chance to make an impression and there is always opportunity cost in not branding intentionally. What’s the story and mission for why you want to do this and what you are offering the seller or the company? Is there a signal to an interesting story about you that reinforces something you want a seller to remember. You may frequently be asked about the name (or at least have the opportunity to introduce yourself and explain why you’ve chosen the brand you have.) While most don’t utilize this opportunity in eta (or broader private investments) and fall into the trap of naming after some place unique to them or just wanting to not be too far off - this is an opportunity (through narrative of your purpose) to positively differentiate yourself and your brand. Agree it may be hard to measure it’s impact in the long run and there is downside to being too risky here, but it’s tough out there and you need every angle and advantage you can muster. Good luck!

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

While investors won't care, your 'targets' will; even if it is only subconsciously. You want to elicit a strong emotional connection as soon as possible. Ideally this will be in your first email and potentially even in the first subject of your first email. As such, when you have an owner interested in speaking with you you want everything about your presentation to point to your 1. competence, 2. capability, 3. integrity. Consider how your name will ring in the ear of a potential seller / owner interested in giving away his/her first child away in marriage. The average marriage lasts 7 years in the USA. The average owner interested in a self funded offer has led their company for more than 25 years. Its an emotional appeal. Try to convey the 'essence' of you and what you offer consistently through your messaging. This includes your business name. How are you unique and different than the masses spamming the owner? Email solicitation is up 75% since COVID and open rates are down 25% (hubspot data). You have to find a way to cut through it.

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