Mowery & Schoenfeld helps aspiring entrepreneurs with limited capital resources search for and acquire a company they can manage and grow, providing them a path for owning and building a business. We have the expertise to help you set up and operate a search fund—an investment vehicle that connects a middle-market firm with the entrepreneur and investors who buy and manage the company.
Search Funds
Accounting Services for Search Funds
Business acquisition and search fund advisory services for entrepreneurs
What Is a Search Fund?
A search fund is an investment vehicle where an entrepreneur raises capital from investors to finance the search for and acquisition of a privately held company. The searcher typically seeks to acquire a profitable, established business with growth potential, aiming to become the CEO or operator post-acquisition.
Investors provide funding during the search phase and contribute to the acquisition when a suitable target is identified. The ultimate goal is to grow and exit the acquired company within a defined timeframe, generating returns for both the searcher and investors. Search funds offer investors exposure to diversified small business investments while providing entrepreneurs with an opportunity to lead and grow established companies.
How We Can Help Navigate Your Search Fund Process
Raising Search Capital
Entrepreneurs raise capital by selling units, or shares, in the fund to investors. This capital is used to support salary, administration, and travel and deal-related expenses.
Identifying and Acquiring a Company
After determining a potential target company, we help the entrepreneur evaluate factors such as the industry, current economic conditions and the owner’s willingness to sell. If the decision is made to purchase the company, the entrepreneur structures and negotiates the deal, performs due diligence, secures financing and plans the transition itself.
Operating and Creating Value
During the third stage, new owners immerse themselves in their business, after which they focus on managing and growing the company. Value creation results from operational improvements, increased marketing and sales, and/or expansion into new markets.
Exiting the Fund
The average length of time for holding a search fund is seven years. At the end, the principals and investors evaluate exit strategies so they can gain liquidity and realize returns. Liquidity occurs through dividend distributions, an equity recapitalization, an initial public offering or a sale.
Why Partner with Mowery & Schoenfeld for Search Fund Services
We are committed to helping entrepreneurs succeed. Our experienced professionals provide entrepreneurs with personal assistance throughout the process, building successful working relationships that we hope will lead to future investments.
- Quality of earnings due diligence
- Tax return preparation, planning, projections and advisory services
- Individual tax services to stakeholders
- Transaction structuring and planning
- Due diligence
- Attestation