SearchFunds have been a very attractive option for entrepreneurs looking to acquire established companies for years. But the classic model is starting to fall short.
The landscape is changing and this is where two approaches come in:
Self-Funded Search. Here the entrepreneur goes all out from the start. First find the company, negotiate the purchase and then look for investors. This requires a great deal of determination and a willingness to jump in without a net.
Vertical Search. Instead of aiming to buy a large company all at once, start with a small SME and then add others in the same sector. A stronger group is created, little by little and with less competitive pressure. Of course, you have to be super professional to integrate several businesses and build a solid project from scratch.
What is most interesting is that both strategies can be combined into one. The result is very powerful: a robust, flexible business ecosystem with high growth potential is created.
The entrepreneur now has to be braver, more professional and willing to make quick and well thought-out decisions. It’s about leading the project from the beginning and demonstrating that you have what it takes.
