Articles/Blogs
Pre-search Consideration & “Why ETA?”
Eight Questions Aspiring Search Fund Entrepreneurs Should Consider Before Launching Their Project - Narbe Alexandrian, Matt Littell & A. J. Wasserstein
Discusses the complexities and demands of entrepreneurship through acquisition (ETA). It stresses the need for aspiring search fund entrepreneurs to conduct thorough self-assessment and introspection, offering eight key questions to evaluate their suitability and readiness for this challenging and long-term entrepreneurial journey.
Overview of ETA - David LaMore
An introduction to entrepreneurship through acquisition (“ETA”), the typical process, and the different models available.
A Warren Buffett–Inspired Guide To Small Business Buying - Raleigh Williams
The article emphasizes three key principles for successful business acquisitions, inspired by Warren Buffett: 1) Ensure a clear margin of safety to avoid financial ruin, 2) Invest only in businesses you understand, and 3) Favor buying quality businesses at fair prices over lesser businesses at low prices, illustrated by the author's personal experiences in the field.
Search Process - Strategies and processes for searching, evaluating, and acquiring small businesses
Search Funds: Best Practices for the Search Phase
Stanford GSB article that discusses best practices for a proprietary search. Provides helpful exhibits with templates for emails to brokers, sellers, and interns.
Exploring Different Search Fund Models - Nicholas Rice & AJ Wasserstein
Yale Management article that covers the different search fund models available. Provides helpful graphics and comparisons.
Brokers
The Must-Have Guide to Business Brokers
This article from an investment banking firm details the roles, functions, and benefits of business brokers in facilitating business transactions, covering their responsibilities, the process of selecting a broker, fee structures, and the overall impact on the success of buying or selling a business.
How to Find a Business Broker as a Buyer - Beacon
This article highlights the advantages of hiring a business broker when purchasing a business, such as their ability to provide information, aid in due diligence, handle legal matters, offer financing guidance, negotiate prices, and obtain disclosures. It also provides tips for choosing a reputable broker, including using referrals, checking certifications, analyzing experience, and opting for full-time brokers.
Brokered deals versus Proprietary Search in Small Business M&A - Private Market Labs
The article compares brokered deals and proprietary searches in small business M&A, noting that while brokered deals offer more certainty and support, proprietary searches allow for targeted, less competitive acquisitions. A hybrid approach is recommended to effectively find and acquire businesses.
Meeting the Seller - Big Deal Small Business
Terrific advice on how to have a successful meeting with the seller and how to approach that meeting.
Broker Questions - Big Deal Small Business
FAQs you’ll receive from brokers and how to answer them.