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jerryking : search_funds   8

Search funds: The quiet, dependable, risk-averse sibling to the startup.
OCT. 1 2014 11:43 AM
“I Didn’t Want to Build the Next Twitter for Cats”
Search funds are the quiet, dependable, risk-averse sibling to the startup. 

By Alison Griswold

for a small number of would-be entrepreneurs who lack either the confidence or the foolhardiness to believe they can create the Next Big Thing in tech, a search fund makes a whole lot more sense.

The idea behind a search fund, in its simplest form, is this: If you want to run your own company but don’t want to start it, then why not buy one? Search funds are financial vehicles typically set up by one or two people to raise money from investors toward searching for—and eventually acquiring—a small business. In one sense, they might be loosely described as micro–private equity firms, except that unlike Bain Capital, the average search funder isn’t looking to make a quick profit off buying, gutting, and reselling a struggling business. He’s interested instead in taking a shortcut to the top of the management ladder and staying there for the long haul..........On the bright side, in exchange for that slog, searchers get one of their main advantages over startup founders: diminished risk. “Starting up a company is a double whammy in the sense that you’re coupling an inexperienced manager or managers with a business that doesn’t exist,” Grousbeck says. “So you have the inherent risk of the venture itself and layered on top of that is the risk that the people running it have never managed anything before. In the search fund model, one of those risks is eliminated.”
buying_a_business  risk-aversion  search_funds 
october 2014 by jerryking
The rise of search funds and a new generation of bosses - The Globe and Mail
Boyd Erman
The rise of search funds and a new generation of bosses Add to ...
The Globe and Mail
Published Tuesday, May. 27 2014
buying_a_business  search_funds  entrepreneur  entrepreneurship  Boyd_Erman 
june 2014 by jerryking
When Opportunity Knocks and Knocks -
August 15, 2007 | WSJ| By BRENT BOWERS.

''We boomers are searchers,'' she said. ''We've done a lot, and we want to merge what we like to do with our plans of what to do next. Or, we may not want to do something we've done before; we might want to try something entirely new. So the question becomes not just, 'What business will I run?' but ''What will I do with my life?' ''

Ms. Smith applauded Mr. Weitz for taking his search so seriously. ''There will be more and more people like him, and they will give a new definition of entrepreneurship,'' she said.

Acting as matchmaker, I set up a phone conversation between searcher and strategist.
search_funds  baby_boomers  entrepreneur  yoga  opportunities  passion_investing  passions  entrepreneurship 
june 2012 by jerryking

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