Pete Seligman Search Investor on finding and inspiring the next generation of business owners.

@Pete Seligman talks about and #eta (Entrepreneur through Acquisition) and #searchfunds and their impact on small business owners. He's an investor and co-owner of multiple businesses. 

Pete explains the concept of search funds and how they provide a vehicle for investors to back #acquisitionentrepreneurs. 

We talk about;

• the importance of finding the right fit between the entrepreneur and the business
• current market challenges and opportunities
• how business owners should handle an approach from  a search fund or investors
• the role of #earnouts in business sales and how they can bridge the gap between buyer and seller
• the common misunderstandings in relation to earnouts, and the potential benefits they can offer
• creative deal making and risk sharing to improve the prospects for getting a successful transaction
• why business owners need to augment their existing advisors with subject matter experts for a sale process
• the importance for owners to reflect on their mission and have honest conversations with co-owners to align their goals

Takeaways

• Search funds provide a pathway for entrepreneurs to buy existing businesses instead of starting one.
• The fit between the entrepreneur and the business is crucial for success.
• Business owners should be open to conversations with search funds and investors, as it can lead to new opportunities.
• Co-investing and joint ventures can be options for owners who want to grow their business with additional capital and expertise.
• Owners should be prepared for potential exit opportunities and have a clear understanding of their role in the business. Earn outs can be a valuable tool in bridging the gap between buyer and seller in a business sale.
• Creative deal making and risk sharing are essential for a successful transaction.
• Owners should consider the potential benefits of earnouts and not reject the concept of deferred payment outright.
• Business owners may need to augment their advisors with additional expertise for a sale process.
• Reflecting on the owner's mission and having honest conversations with co-owners are crucial for aligning goals.

@kerrcapital

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Reach out to Michael Kerr via the website if you need personal assistance or advice for your small business.

michael.kerr@kerrcapital.com.au

www.ownertoownerpodcast.com.au