International Search Funds - 2011: Selected Observations
Francisco Liquido, Peter Kelly, Antonio Dávila, Robert Johnson. (2011)
IESE ST-336-E, 16 pp
First IESE edition. The PDF title page names Liquido as lead author and carries "November, 2013" and "Copyright 2013"; the IESE hub page lists the same PDF under Kolarova, Kelly, Dávila and Johnson, so cite from the PDF. Sample: "a pool of 21 first-time search funds, the earliest of which was formed in 1992"; "excludes search vehicles that are self-funded" (p5); "Two search funds in Brazil refused to participate in the study and three search funds in the United Kingdom were unresponsive" (p5 fn 2). Status at year-end 2011: four searching, four operating, six deviated from the model, seven terminal (two exited for a positive return, two shut down at a loss, three ended without an acquisition) (p5 to p6). No return figures: "it is too early to publish meaningful performance data" (p8); eight acquisitions in total, median "$5.5 million in revenues, EBITDA margin of 20% and a purchase price to EBITDA multiple of 4.3x" (p7 to p8).