The search fund has been presented as an attractive alternative for those entrepreneurs who want to become CEOs of an established company. However, a study by Stanford University shows that 33% of the search funds analyzed were unable to complete a single acquisition; it goes without saying that 25% of those who were able to acquire a company showed a partial or total loss of the initial investment.
The origin of this problem lies during the origination in the search process, either in a proprietary way or through intermediaries, and it is also accompanied by a lack of experience in the acquisition and purchase structuring, so it is difficult at the stages to reduce risks involved in this type of undertaking.
How are we going to address the issues?
Starting a search fund requires data, methodology, funding and a live learning process to increase the chances of success in closing a transaction, as well as training to run an organization and take it to the next level.
Given the above, we are looking for entrepreneurs (cohort) who wish to participate as operating partners to start their search fund through our program, accompaniment and investment to dedicate themselves full time for a period of up to 24 months and from there continue as future CEOs in the organization they wish to lead. This works as follows: