Deal structure Archives - CT Acquisitions

How Search Funds Finance Acquisitions (and What Sellers Should Know)

how search funds finance acquisitions

How Search Funds Finance Acquisitions (and What Sellers Should Know) Quick Answer Search funds are investment vehicles where entrepreneurs raise capital from investors to search for and acquire an existing business, typically a founder-owned company generating 500k to 5 million in EBITDA. The model operates in two phases: a search phase where the entrepreneur identifies […]

The Pros and Cons of Selling to a Search Fund (No Sugarcoating)

pros and cons of selling to a search fund

The Pros and Cons of Selling to a Search Fund (No Sugarcoating) Quick Answer Selling to a search fund offers advantages like seller financing flexibility, earnout potential, and a buyer committed to long-term growth, but disadvantages include longer sales processes, less liquidity upfront, and dependency on the search fund operator’s execution ability. Search funds typically […]