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Buy and Build

Ep 54: Introducing Graeme Wallis and Traditional Vs Self Funded Search Funds

Nov 22, 2022
Graeme Wallis, an aspiring entrepreneur passionate about ETA and the UK ecosystem, shares his insights on pursuing a traditional search fund. He explains how he discovered search funds and why the traditional route resonated with him. The conversation dives into the differences between traditional and self-funded search funds, emphasizing the importance of community support and the role of investor relationships. They also explore motivations behind business acquisitions and the strategic nuances specific to the UK market.
58:49

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • The traditional search fund model provides structured support for acquiring small businesses through investor capital, enhancing trust and collaboration during the search phase.
  • Successful searchers thrive in a supportive community that fosters networking and mentorship, vital for continuous learning throughout their journey in the traditional fund framework.

Deep dives

Exploring the Traditional Search Fund Model

The traditional search fund model is a structured approach to acquiring small businesses, typically involving a searcher who raises capital from committed investors. It usually spans a period of 24 to 30 months, enabling the searcher to source and evaluate acquisition opportunities. Investors fund the operating expenses during this search phase, giving them the option to invest further during the acquisition phase if they are satisfied with the searcher's performance. This model is attractive because it combines the venture capital and private equity frameworks, allowing investors to support a searcher without a significant initial financial commitment.

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