Self funded vs traditional: deal size & keeping current job

searcher profile

November 21, 2024

by a searcher from Clarkson University - School of Business in Philadelphia, PA, USA

Hello everyone!

I have been talking to people in the search fund community and there has been a large push to go self funded instead of the traditional rout from everyone i talk to.

I am wondering if there is a major difference in deal size when you are self funded, is it not practical to do as large of a deal and if it is how do you garner the same deal size?

Also is it possible to keep a job where you’re working 40 hours a week and still search on nights and weekends? I will obviously leave post close.

open to discussion with anyone with these or similar insights they have!

thanks!

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commentor profile
Reply by a searcher
from Harvard University in Austin, TX, USA
Larger deals in a self-funded search are possible but challenging. Brokers for businesses with EBITDA over $3M often expect formal capital sources, and competition from LMM PE can make things tougher. You need to be able to clearly explain a complete financing plan and demonstrate that you have the access to capital and/or investors that will enable you to complete the transaction.

Balancing a full-time job adds complexity—deals move during business hours, and brokers aren’t having those conversations on nights and weekends. Staying competitive while working requires exceptional time management or flexibility in your current job.
commentor profile
Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
Your situation has been covered numerous times on SF. Use the search box to find related information. And don't let the losers influence you. Know how to prepare yourself and then follow the plan.
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