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