Forget the MBA career, use the Search Fund route to become a CEO
In the early 1990s, Kevin Taweel, a Stanford Graduate Business School (GBS) student, was considering his job options just before graduation. Offers from many large corporations had come his way but the prospect of being chained to a desk at an office, however posh, did not appeal to him very much. He wanted to be his own man and his own boss.
Kevin wanted to establish his own company. But apart from his degree he had very little else. He didn’t have experience to run a business, and he didn’t have money to buy one. In fact, he found it difficult to even meet his living expenses. How would he realize his dream?
Kevin found the answer. He set up a “search fund,” which means a group of investors who are …show more content…
They didn’t worry too much about the 50 percent lower income that they would make in the initial period of the fund.
The search fund concept is gaining popularity at top business schools such as the Harvard Business School. A word about the fund concept: In the first stage of a search fund, the principals approach investors, usually family and friends, b-school faculty, angel investors, business persons, and institutional search fund investors, for funds for the search to identify a company to acquire. Principals look for a company that has a good market for its products, consistent and secure cash flows, and potential for further growth.
Target companies are usually bought for between $5 million and $30 million. If a search fund finds a company worth acquiring, the investors who provided the initial funds for the search can make a specified minimum investment for the acquisition. If the principal is unable to narrow down on a company, the search fund is
In the early 1990s, Kevin Taweel, a Stanford Graduate Business School (GBS) student, was considering his job options just before graduation. Offers from many large corporations had come his way but the prospect of being chained to a desk at an office, however posh, did not appeal to him very much. He wanted to be his own man and his own boss.
Kevin wanted to establish his own company. But apart from his degree he had very little else. He didn’t have experience to run a business, and he didn’t have money to buy one. In fact, he found it difficult to even meet his living expenses. How would he realize his dream?
Kevin found the answer. He set up a “search fund,” which means a group of investors who are …show more content…
They didn’t worry too much about the 50 percent lower income that they would make in the initial period of the fund.
The search fund concept is gaining popularity at top business schools such as the Harvard Business School. A word about the fund concept: In the first stage of a search fund, the principals approach investors, usually family and friends, b-school faculty, angel investors, business persons, and institutional search fund investors, for funds for the search to identify a company to acquire. Principals look for a company that has a good market for its products, consistent and secure cash flows, and potential for further growth.
Target companies are usually bought for between $5 million and $30 million. If a search fund finds a company worth acquiring, the investors who provided the initial funds for the search can make a specified minimum investment for the acquisition. If the principal is unable to narrow down on a company, the search fund is