Acquiring Minds Stay Open to the Many Flavors of Search
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Nov 1, 2021 Topics covered in this podcast include traditional vs alternative search fund models, advantages of self-funded search, the appeal of bookkeeping businesses, standing out to potential sellers, the first six months after acquisition, modernization opportunities in bookkeeping, challenges in finding qualified employees, and exploring different paths to starting a business search.
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Traditional Search Fund Equity Vesting
- Traditional search fund equity vests in tranches, mixing time and performance conditions.
- This structure ensures post-acquisition accountability and performance alignment with investors.
Advantages of Self-Funded Search
- Self-funded search funds offer crucial flexibility to consider smaller businesses and focused geographies.
- This approach allows ownership of a larger share of a smaller business, making financial outcomes attractive despite scale.
Chris’s Path to System 6
- Chris initially reached out to System 6's owner early in his search and they stayed in touch despite initial mismatch of deal size.
- Later, after a tragedy and reconsideration, the owner re-engaged, leading to Chris's eventual acquisition of the business.