“Founders, by nature, are skeptical of outside capital. They’ve worked to build their businesses with their own two hands, rarely (if ever) relying on third parties. This is a major barrier for investors to overcome.” -Jeff Meltzer, Founder of ReverseSearchFund.com
If your firm invests in (or seeks to buy) businesses like mine, allow me to share a little secret with you. We founders are skeptical, at best, of the entire investment community.
Why? Perhaps it has to do with the world in which we operate. We’re machine shops, we’re trucking fleets, we’re software development firms, we’re construction professionals, we’re healthcare service providers – in short, we are what makes the economy tick each day. Each day, we wake up with fresh ideas for keeping our businesses moving – and, serving the people who keep us afloat.
Whether right or wrong, many business owners stereotype the entire investment community into a far-off, Wall Street-only club for the elite.
Give Founders What They Want
In light of this, you can understand why a “feeler” from an outside equity firm may fall upon deaf ears. It’s not that the founder is opposed to outside capital; rather, he either doesn’t have the time, capacity, or perspective to even consider it as real.
Most founders, myself included, love what they do. It would be very difficult for me to sell my company outright. However, if the right opportunity presented itself (at the right time), I might be willing to entertain a partial buy-out of equity – especially if I could stay involved with the strategic aspects of the business.
Unlock a New Source of Opportunities
I’m not alone in this perspective – which is exactly why I launched ReverseSearchFund.com. There are millions of business owners like me who could benefit from outside capital. However, if your company forces this message upon them, the founder community is less likely to listen. They need an independent platform to learn and then, when the moment is right, engage with firms like yours.
This site serves primarily as an educational resource for founders. We also seek to help match firms like yours with founders who have expressed an interest in the search fund model. We are not a search fund, but we like helping business owners achieve their goals. I welcome you to sign up today and join our network of partners.