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Top M&A Entrepreneurs
Welcome to Top M&A Entrepreneurs – your go-to resource for inspiration, insight, and actionable advice on business buying. Each episode features engaging conversations with business buyers who share their “why” and industry service providers who break down the “how.” Learn from the pros and take your next step toward a successful acquisition with confidence.
Top M&A Entrepreneurs
Can Self-Funded Searchers REALLY Raise MILLIONS of CAPITAL?
Can Self-Funded Searchers REALLY Raise MILLIONS of CAPITAL to Buy a Business? Sean Smith of Search Fund Ventures explains how its done.
Takeaways
• Search Fund Ventures focuses on self-funded searchers and independent sponsors.
• They target essential products and services for investment.
• Investment involves filling equity gaps for searchers.
• Sean emphasizes the importance of downside and upside return scenarios.
• Recent Successful deals are evaluated based on strong revenue bases and recurring revenue.
• Searcher qualifications include financial backgrounds and industry experience.
• The HVAC sector is a key focus area for their investments.
• They prioritize deals with near-term distributions for investors.
• The fund has a three-year deployment period for capital.
• Incentive alignment between investors and entrepreneurs is crucial.
Chapters
00:00 Introduction to Search Fund Ventures
02:47 Understanding Self-Funded Searchers
05:54 Investment Process and Value Addition
09:00 Cost of Capital and Return Expectations
12:02 Recent Deal Overview
15:00 Evaluating Searcher Qualifications
18:07 Commercial vs. Residential HVAC Businesses
20:55 Roll-Up Strategies and Multiple Expansion
23:54 Investor Commitments and Fund Structure
27:05 Navigating the Search Fund Landscape
30:02 Intrinsic Value and Investment Decisions
33:14 Due Diligence and Quality of Earnings
36:05 Future Goals and Investment Timeline