Search Funds

Business Acquisition for Entrepreneurs

Accounting Services for Search Funds

Mowery & Schoenfeld helps aspiring entrepreneurs with limited capital resources search for and acquire a company that they can manage and grow, providing them a path for owning and building a business. We have the expertise to help you set up and operate a search fund — an investment vehicle that connects a middle-market firm with the entrepreneur and investors who buy and manage the company. 

Helping Entrepreneurs Find the Right Business

Our professionals realize that the search fund path to ownership is not for everyone, and we help prospective clients understand what is involved before they embark on this journey. The search, acquisition and management of a company require a great deal of physical and emotional energy, interpersonal skills, a highly competitive nature, a powerful work ethic, and the ability to handle high levels of uncertainty, change and stress. For those who can deal with the challenges, the result can be financially rewarding; at the least, the entrepreneur gains valuable professional experience.   

The Search Fund Process

We help aspiring entrepreneurs navigate the search fund process every step of the way:

  1. Raising Search Capital
    Entrepreneurs raise capital by selling units, or shares, in the fund to investors. This capital is used to support salary, administration, and travel and deal-related expenses.
  2. Identifying and Acquiring a Company
    After determining a potential target company, we help the entrepreneur evaluate factors such as the industry, current economic conditions and the owner’s willingness to sell. If the decision is made to purchase the company, the entrepreneur structures and negotiates the deal, performs due diligence, secures financing and plans the transition itself.
  3. Operating and Creating Value
    During the third stage, new owners immerse themselves in their business, after which they focus on managing and growing the company. Value creation results from operational improvements, increased marketing and sales, and/or expansion into new markets.
  4. Exiting the Fund
    The average length of time for holding a search fund is seven years. At the end, the principals and investors evaluate exit strategies so they can gain liquidity and realize returns. Liquidity occurs through dividend distributions, an equity recapitalization, an initial public offering or a sale.

Specialized Accounting Services

We offer the following services:

  • Quality of earnings due diligence
  • Tax return preparation, planning, projections and advisory services
  • Individual tax services to stakeholders
  • Transaction structuring and planning
  • Due diligence
  • Attestation

Learn more about our search fund offerings

Partner with Mowery & Schoenfeld

We are committed to helping entrepreneurs succeed. Our experienced professionals provide entrepreneurs with personal assistance throughout the process, building successful working relationships that we hope will lead to future investments.

 
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