Not the buyer group's investors. The buyer groups investors. Yeah. Oh, but then my investors too, in a way because they're like, so the buyer groups investors go like, well, you know, why should we pay for this? They already bought something.
Acquiring Minds
The Joy & Pain of Buying a Tech Business
Excerpts · 330 segments · ~1:42:36 long
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You know, let's should be a friendlier handoff. It's like, well, nothing's, you know, nothing's comes at no cost. But then my investor group, they were not like that.
But they could have been like, hey, you know, you're about to close on beaker, you know, maybe focus your time elsewhere. Yeah, didn't happen to me per se, but I heard of other researchers who were in that situation. And it gets really tricky.
Well, when you have the same investors in the buyer and the seller group, that's happened before. And the best thing, I mean, if an investor is listening, the best thing an investor can do in that situation is just take a step back and say whatever you guys agree, we're following through. The worst thing you can do is have a, an opinionated investor share thoughts when they're sort of clearly…
Yeah, absolutely. Separate topic. Yeah. And to be Clear.
A deal is worth paying for. So the deal that you handed off to these two other search funds, search searchers, only when it's under LOI and only when all the terms have been, I mean how, how tied up does the deal need to be for it to be worth a finder's fee to you? It's actually, I would rephrase the question and, or the answer and I would just say, well, depending on how far along you are, how…
So in my case, this 1% in cash, 1% of equity. The stage was we had signed the LOI and we were almost done with commercial due diligence.
We had probably a 20 slide mini SIM ready to share, but $0 spent on quality of earnings, tech diligence, other legal diligence, nothing like that.
But obviously if you've already spent, if you already have QV and you have techdd when applicable and you have a first version of the fba, if you have all of that, then obviously the price, you know, you combine the higher finders fee just because you have to reimburse the selling search fund, all of the expenses and other stuff. Yeah, yeah, it could probably go up, you know, from 2% to 4 or 5%.…
Okay, yeah, great. Well thank you for sharing that Felipe. That's of course we know finders fees, but that was a great kind of anatomy of how you did it in two cases actually. If you ask owners in the ETA and search community which insurance broker provides highest quality work, great outcomes and has a practice dedicated to searchers and acquisition entrepreneurs, one name comes up again and…
Oberle. Oberle Risk Strategies has worked with hundreds of searchers over nearly a decade and is in fact led by by a two time successful searcher, August Felker, which makes Oberle a specialty insurance brokerage for searchers by a former searcher. And if you've got a business under loi, Oberle will provide complimentary due diligence on that business's insurance and benefits program. An easy no…
To know August and the team at Oberle. To take advantage, check out oberle-risk.com that's O B E R L E- risk.com. Link in the notes. Before we get to hearing about Beecker, the business that you bought a minute on why you chose a traditional search fund versus self funded.
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