Technical Note | HBS Case Collection | December 2012 (Revised June 2013)

Early Career LBOs Using the Search Fund Model

by Howard Stevenson, Michael Roberts and Jim Sharpe

Abstract

The funded search model is one alternative for individuals who, at some point in their career, want to run their own companies. This note looks at the funded search, as a means to entrepreneurship through acquisition and describes the path to buy and run a business using debt and equity as a means of financing the purchase. While applicable to an early career choice, many of the process steps are applicable to unfunded searches at later stages of a career.

Keywords: Search Funds; search; leveraged buyouts; entrepreneurial finance; investor behavior; career planning; entrepreneurial management; fundraising; negotiation; Entrepreneurship; Capital Structure; Borrowing and Debt; Personal Development and Career; Private Ownership; Acquisition; Finance; Leveraged Buyouts;

Citation:

Stevenson, Howard, Michael Roberts, and Jim Sharpe. "Early Career LBOs Using the Search Fund Model." Harvard Business School Technical Note 813-119, December 2012. (Revised June 2013.)