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Insearch Ltd: Searching for a company to buy
By March 2022 Steve Webb had spent more than three years looking for a company to acquire. He was in final negotiations to buy a company, but he and the vendors did not see eye-to-eye on its valuation. Steve was also concerned about how to structure an offer. He was in a difficult financial situation: the search had lasted much longer than originally planned, the £250,000 of search capital had been spent, his company, Insearch Ltd, had outstanding legal bills, and it would take another £40,000 in legal and accounting fees to complete the transaction. He wondered if this was the time to get a “proper job”.
- Understand the temperament required to be an entrepreneur through acquisition.
- Understand how funds are raised for a search fund.
- Illustrate the importance of having clear search criteria to evaluate potential acquisitions.
- Demonstrate the determination, self-motivation and timescale typically required to succeed in ETA.
- Enable students to reflect on the personal characteristics required before embarking on ETA. This could stop them making an unsuitable career choice!
|Publication Date:||October 2023|
|LBS Case Code:||CS-22-019|
|Subjects:||Company acquisitions, Entrepreneurship through acquisition (ETA), Search funds|
|Geography:||Europe, United Kingdom|