Acquiring Minds Investor Perspective on Self-Funded Search
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Aug 22, 2024 
Niklas James, Adam Borcz, and Tony Cappeart share their expertise on self-funded search investing. Niklas dives into the risk-reward balance of the model, while Adam highlights key traits investors look for in searchers. Tony reveals common pitfalls in financial modeling, stressing the need for realistic growth expectations. The trio discusses the importance of trust and transparency in deals, the significance of industry experience, and how operational skills can trump financial knowledge. Their insights illuminate the evolving landscape of search investments.
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Ideal Searcher & Business Profile
- Invest in businesses with consistent profitability and some debt, ideally $2-5M EBITDA.
- Seek searchers with some operating experience, especially in blue collar industries, who can run businesses and "get things done."
Blue Collar Experience Matters
- Having blue collar operational experience helps in managing blue collar businesses effectively.
- Lack of such experience may cause the searcher to dislike or struggle with running their acquired business.
Investor Preferences for Searchers
- Searchers should show deep vertical niche expertise or domain knowledge for stronger investor confidence.
- Have skin in the game with personal investment, be reflective rather than salesy, and provide referrals to back credibility.