LOGIN
LOGIN

SEARCH FUNDS

Pioneered by the Stanford Graduate School of Business, Search Funds enable entrepreneurs to find, acquire and grow existing yet stable SMEs into high performing businesses.

SEARCH
FUNDS

Pioneered by the Stanford Graduate School of Business, Search Funds enable entrepreneurs to find, acquire and grow existing yet stable SMEs into high performing businesses.

How to start a Search Fund

The first step in forming a Search Fund is to find potential investors who will not only provide capital, but also give crucial support and mentorship throughout the process.

Finding 10-15 trusted Search Fund investors is the goal, as they will be your partners to your venture in the long term. While not always an easy task, the potential outcome is very attractive as previous investors in Search Funds generated on average 33% IRR.

Investors contribute to the initial search capital, bringing combined between €300,000 and €500,000 to cover your salary and other expenses during the search phase, which can last up to 24 months. At this stage, the right of first refusal is given to the initial investors to fund the acquisition.

We leverage our market leading knowledge of SMEs to identify those with

the greatest potential to take them to the next level of growth.

SEARCH FUNDs
ARE GENERATING

0 %

YOY

SEARCH FUNDs
ARE GENERATING

0 %

YOY

SEARCH

· Simple operations and motivated seller
· High EBITDA Margins (> 15%)
· Recurring Revenue
· Low customer concentration

· At least 3 years of profits and growth
· EBITDA of at least €1m (€1-5m target)
· Low Capex needs
· Fragmented Industry with tailwinds

01.
Your mission: find one suitable SME and convince the owner to sell it to you.
The 2018 Stanford Search Fund Study shows that 69 percent of Search Funds acquire a company. The criteria below will help you find the right opportunity:
SEARCH
ACQUIRE
02.
A potential risk for the entrepreneur is to acquire a company that does not have the right foundations to enable future success. Our role at Moonbase Capital is to help you navigate this crucial phase, providing you with experience and insights we gained as CEOs in multiple SMEs.

When the time for acquisition comes, each investor can use their pro-rata right of first refusal. Some situations might suggest other financial tools such as seller or bank debt to cover up to 70% of the purchase price. Typically, companies are acquired at fair market value for €10-30 million.
ACQUIRE
GROW
03.
This is where your exciting journey as CEO begins. The first step is to familiarise with the business, the people and the operations within the first 6-18 months. Once at ease with your new role, you’ll feel comfortable bringing the right actions to unleash growth and overall improvements. Your close team of investors will support you from your first steps as CEO up to your strategic choices as seasoned business leader. This is where the core value proposition of Moonbase Capital lies – in all phases of the process, searchers are guided by our advisory board, and our partners – a perfect balance of best-in-class support and autonomy.
GROW
EXIT
04.
When growth targets have been achieved – usually between 3 to 6 years – the team exits and returns are delivered. In this stage Moonbase Capital can support you again with our M&A experience and our advisory board. This can be instrumental in finding potential buyers, and in helping you structure your exit. While not typically the case, some CEOs opt to stay onboard long after the exit phase, and opt to lead their new company into the future.
EXIT

GET OUR LATEST NEWS,
SUBSCRIBE TO OUR NEWSLETTER

SITE MAP

SITE MAP

GET OUR LATEST NEWS,
SUBSCRIBE TO OUR NEWSLETTER

Linkedin

© 2022 Moonbase Capital. Privacy Policy.

Linkedin

© 2022 Moonbase Capital. Privacy Policy.

LOGIN