Saumil Jariwala’s Post

There comes a day for every searcher: the day you find your perfect deal. But be wary before you commit. Convincing investors to invest in the deal shouldn't take 100 pages. If explaining it is difficult and complicated, think twice. The best deals always seem to sell themselves. They don't need you to mess it up.

Searchers (folks looking to buy a business) have one competitive advantage compared to typical buyers like private equity. It's their personal reputation - their willingness to get their hands dirty and take control of the company. People like doing business with people. Would you rather sell to some rando finance guy who drives a porsche and wears a suit and tie, or a young and hungry CEO that wants to continue your legacy and take it to the next level? What perplexes me is that Searchers continue to use dumb naming conventions for their fund. They copy naming conventions from Private Equity/institutional finance, which typically involves some species of rock, tree or mountain, combined with "Capital" Some examples... - CedarPeak Capital - SummitSpruce Capital - Redwood Ridge Capital - MapleSummit Capital - BirchBrook Capital - EverestPine Capital - MountainOak Capital Partners Bro, ditch the "Capital". You're not fooling anyone. Use your personal brand and say you're backed by smart, rich mofos.

How to check your search fund deal's revenue quality. 👇 A search fund is a unique way to acquire and grow a small business, using intellectual and financial capital to do so. And the quality of the revenue in your acquired business is a key factor in its success. If you overestimate the quality of the revenue, you might overpay for the business, and you might find it difficult to grow the company and find willing buyers down the line. It's worth doing the work to figure out what you're buying. Here are some questions to consider: - Is the revenue consistent and predictable? - Is it recurring? - Is it growing? - Is it profitable? - Is it easy to understand? - Is it easy to explain? - Is it easy to measure? - Is it easy to defend? - Is it easy to improve? - Is it easy to scale? - Is it easy to replace? - Is it easy to sell? - Is it easy to ignore? If the answer to most of these is yes, you're on the right track.

Reducing Broken Deal Costs for Self-Funded Searchers? Answering Colson Meyers: In self-funded searches, broken deal costs can quickly add up. For those who have faced this challenge, what strategies have worked best for you to reduce these costs? How do you approach due diligence and negotiations to minimize risks without cutting corners? Practical tips on handling these expenses would be greatly appreciated. Amazing question. My number 1 advice is not to invest in due diligence before you have signed a bidding loi with a penalty clause for seller if they decide not to close (is basically a deferred payment in 90 days). In the Bidding LOI you should write a clause that allows you not to buy. If new pieces of info are discovered in due diligence and the seller intentionally didn't share them before, the penalty will also apply. Last year I spend around 20k in due diligence in failing deals (fuck haha) and this year i have a full time team ready to deliver so, if you are a self funded searcher and you want our support for free, just join our private community and lets talk (since we are actively investing): https://lnkd.in/d5fb3bGi #selffunded #gettingstarted

Founders shouldn’t choose investors based on the money they bring in. Founders should choose investors based on total value they bring (customers, expertise, money, etc.). Money is a commodity that can be obtained through other channels. Relationships and knowledge are unique and often expensive to acquire – through hiring, marketing and other means. The right investor isn’t always the richest. It’s the one that will invest in all aspects of the founder’s business.

It's not always easy and sometimes feels almost impossible, but if property sourcing is something you're passionate about and you're willing to put in the extra time to your business to not only find investors, but make sure you follow the right processes and procedures, you're already well ahead of the many, many sourcers out there! 💪 #propertysourcing #dealpackagers #onepercent #topofyourgame #winning #smallbusinesses #propertysector #propertysourcers

We have started this financial year with purchasing in mind.. When we say purchasing we are not talking about buying bits and pieces we are talking about companies that are either up against it, lack of energy, or those owner Directors who are looking to either retire or have no one to hand their business to. We are openly speaking with owners from a vast cross-section of industries and services nothing is off the table. if you are looking for a way out of your business and or you know someone looking to sell please drop me a line. An associate of mine just bought a digital marketing business from a private equity company who were desperate to get the business off their books and their hands - we helped him secure the purchase and designed the strategy for the future of the business. Contact me direct here - neill.walker@unicus-consultants.co.uk #sellyourbusiness #businessbuyer #sellyourcompany #buyerready #quicksale #getthebestprice #consultancy #PrivateEquity

The problem for most fund of funds managers isn’t finding deals. It’s bringing enough capital to the table to join the deal. Why? 👉 Not everyone has a vast personal network of high-income, accredited investors. 👉 Many have hustled together an email list, only to have a small percentage actually invest. 👉 They’re not sure what’s off-key: the copy, the lead nurturing, the strategy. These problems multiply on top of a busy life. It's hard to stay on top of your marketing game when you're... 🔷 Evaluating deals and potential partners 🔷 Working a W2 job 🔷  Trying to read / exercise / call your mom / walk the dog / meditate / eat the latest açaí berry smoothie So—things fall through the cracks: Broken links and outdated Calendly pages. Lead magnets that never really get downloaded. An investor lists that stagnates or grows like Danny DeVito. What to do? In my opinion—build powerful online funnels that attract and convert leads into investors, on autopilot. So you can focus on deals, due diligence and walking the dog. What falls through the cracks with your day to day grind? For me—it’s the açaí berries. 

“Where there’s smoke there’s fire” If you have one party interested in buying your company, there’s likely others. Here’s why: If you’ve in advanced talks with a private equity fund or strategic buyer, your first reaction might be to just focus on the single buyer After all, if you think that this is the best (or only) buyer for your business, you should just talk to them right? What I've found is the opposite to be true: one interested party is evidence that you’ve built something of value, and it’s very likely that others will also recognize that value If you have built a business that is interesting to one group (say, larger competitors in your industry) then another group (such as private equity funds) will probably be interested as well And even if you think the original suitor is ultimately the best buyer, talking to more buyers has the best chance of: 1. Increasing valuation 2. Getting you better deal terms 3. Increasing the probability that you'll actually close a deal You might be scared that you'll lose the original bid, but after working on dozens of deals over my career, I can say more potential buyers can only help your chances

As a self-funded searcher, how helpful do you think it would be to know the different investor archetypes and how each thinks about searcher equity? Or how they think about target returns and preferred equity vs shareholder loans? From my experience, investors on the self-funded side do not want to begin extensive dialogue until a deal looks very likely to close. This makes sense, there are so many ways a deal can die in the early stages and we are all busy. How then can you get these insights early enough to be sure that you structure deals that will match what investors are looking for? It can be tough, and the last thing you want is to renegotiate a deal with sellers and lose goodwill. That is why we built an investor module into our upcoming Buy and Build Accelerator. This session is hosted by a multi-deal self-funded investor and will deliver a ton of value. If you are interested in joining the next cohort, we have 18 seats remaining for the January '24 event. Sign up now at https://lnkd.in/g9qniv8R