E182: Pete Seligman: Navigating the World of Search Funds and ETA

How2Exit: Buy, Don't Build - M&A of Small Businesses

About the Guest(s): Pete Seligman is a search fund investor and entrepreneur based in Australia. With a background in engineering, finance, and project management, Pete brings a diverse skill set to his work. In 2013, he followed his passion for business ownership and acquired a small mining services business, which he successfully grew and expanded over the past decade. Currently, Pete is actively involved in the search fund community, where he supports and mentors aspiring entrepreneurs in their quest to acquire businesses.
Summary: In this episode, Pete Seligman takes us on his journey from being a business owner to becoming a search fund investor. He shares the process of acquiring his first business and the challenges he faced along the way. Pete emphasizes the importance of self-awareness and finding the right fit when considering entrepreneurship through acquisition. He highlights the value of building a strong network and seeking advice from experienced entrepreneurs. Pete provides insights into the search fund model and its potential for success. He also discusses the qualities he looks for in searchers and the timeline for exiting a search fund investment.
Key Takeaways:

• The search fund model offers a unique pathway to business ownership and investment, providing an alternative option for business owners considering an exit strategy.
• Self-awareness and finding the right fit are crucial when exploring entrepreneurship through acquisition, as it requires a deep understanding of personal goals and strengths.
• Building a strong network and seeking advice from experienced entrepreneurs can greatly enhance the search process, providing valuable insights and guidance.
• Successful searchers possess qualities such as grit, perseverance, and coachability, which are essential for navigating the challenges of acquiring and running a business.
• The timeline for a search fund investment typically ranges from 5 to 10 years, with an average hold period of around 5 to 6 years.

Search Fund Primer
-For those contemplating either pursuing a search fund or investing in one, Stanford Business has created a practical guide to answer the most frequently asked questions.
The primer aims to provide an unbiased view of the benefits and challenges, explains the model from both the entrepreneur’s and investor’s perspectives, and gives many operational and execution tips from previous search fund entrepreneurs. (It also has example contracts and letters).
https://www.gsb.stanford.edu/experience/about/centers-institutes/ces/research/search-funds/primer
Watch it on Youtube: https://youtu.be/BPcdqPRdPBI
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Contact Pete on
Linkedin: https://www.linkedin.com/in/peteseligman/
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