Traditional vs. Self-funded Search

Traditional search and self-funded search are two great paths to acquiring & operating a business.

In Traditional search you acquire a middle market business using equity from a lot of investors where as a self-funded search you use your own funds and sometimes a handful of investors to close the equity gap in acquiring a smaller business. In traditional search you get paid to search and self-funded search you do not.

You can view a grander list of the pros and cons here. I highly recommend you review it!

When deciding which path to venture down, work backwards and determine what your trying to accomplish by buying a business & what you want your life to look like. Think about your current lifestyle- what do you want to keep & what do you want to change?

What amount of freedom and autonomy do you want?

What amount of support do you want?

What level of stress can you tolerate? Will that PG you have to sign if your self-funded be a dark cloud that’s too much for you to handle?

Will the support of others in a traditional search be more annoying than helpful? Or do you enjoy having others to support you and lean on for direction?

If you succeed in self-funded search or traditional search, the gains will be great so please don’t solely focus on the economics. Many posts, charts, and graphs out there compare both of the economic outcomes but there’s too many variables to be accurate in doing so. Rather, focus on who you are as a person and what you need to best support you as you grow your company.