What are risks of buying "too small"?
Hi all,
Most advice for traditional search fund acquisitions are typically at a minimum of $1-2million EBITDA. What are risks of going smaller than this size?
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by a searcher
from University College London, University of London
in Kuala Lumpur, Federal Territory of Kuala Lumpur, Malaysia
in Kuala Lumpur, Federal Territory of Kuala Lumpur, Malaysia
9mos ago
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by a searcher
3w ago
from Universität Hamburg in Berlin, Deutschland
from Universität Hamburg in Berlin, Deutschland
The main things have been mentioned - it might be tedious and challenging to cover all daily tasks that have so far been with the seller, and not have enough profit/margin to hire additional capacity (internally or externally)
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by a searcher
2w ago
in Asheville, NC, USA
in Asheville, NC, USA
@redacted's answer is spot on... He takes time to scale up as you don't have the financial resources/cash flow and you are working IN the business instead of working ON the business . And if you are working IN the business, you bought yourself a job. Nothing wrong with it but you are sometimes the block to the growth. He tooks me 10 years to be able to grow to where I could hire a head of ops and start working ON The business !
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