"Why help create competition by encouraging new buyers?"
Hopefully the piece was a dose of reality. Plus, the market is outrageously large and helping people is fun.
It’s not. Challenge with search fund data is the survivorship bias. Most failed searches aren’t reported. Gives the illusion that success is far more prevalent. Can you get lucky? Yes, but deals take time.
Only about 20% of deals close after a letter of intent in the LMM. Misfires are expensive.
Travel for three years = $100K
DD on two failed deals + one completed deal = $300K
Everything else over three years = $100K
Yes it is. When you see low multiples, those don’t take into account transaction expenses. Adjusted, multiples are far richer. Reason why most small companies never transact. More profitable to liquidate.
Short-dated, high-control money is far easier. Patient, kind, low-stress money is incredibly rare. Plus, most banks won’t lend on “blue sky” and balance sheets are light. Depends on what you’re shooting for.
Your uncle is likely street smart and gritty, treats people well, and commands loyalty. SMBs aren’t complicated, but require commitment that few have, including probably you.