# Supporting a Search Fund in Acquiring and Growing a Business ## Challenge A group of experienced entrepreneurs approached our firm for guidance in establishing a search fund to identify, acquire, and scale a promising small or medium-sized business. ## Approach Our corporate transactions and private equity teams collaborated to provide comprehensive legal support throughout the search fund lifecycle: - Assisted in the formation of the search fund entity, including the drafting of the limited partnership agreement and other organizational documents - Advised on the search and screening process, helping the fund managers evaluate potential acquisition targets and conduct thorough due diligence - Negotiated the purchase agreement and related transaction documents for the selected target company, addressing issues such as valuation, seller financing, and post-closing integration - Counseled the search fund on post-acquisition strategies, including the implementation of growth initiatives, operational improvements, and strategic partnerships ## Result The search fund successfully acquired a well-established manufacturing company and, with our continued support, has achieved the following milestones: - Increased the target company's annual revenue by 25% within the first year of ownership through strategic expansion into new markets - Streamlined the target company's operations, resulting in a 20% improvement in EBITDA margins - Recruited a highly capable management team to drive the company's growth and integration into the search fund's portfolio - Positioned the search fund as an attractive investment vehicle, leading to the successful fundraising of additional capital for future acquisitions ## Industry Benchmark According to a recent study by the Stanford Graduate School of Business, search funds have demonstrated an aggregate pre-tax internal rate of return (IRR) of 33.7% and a return on invested capital (ROIC) of 5.5x, outperforming many traditional private equity investment strategies. ## Disclaimer The information provided in these client success stories is for illustrative purposes only and does not constitute legal advice. Each client's situation is unique, and outcomes may vary based on specific circumstances. Sequoia Legal does not guarantee similar results in other matters. The content of this document is protected by copyright and other intellectual property rights owned by Sequoia Legal. Any unauthorized use, reproduction, or distribution of this material is strictly prohibited. ## Get Your Free Legal Consultation Today Sequoia Legal is your trusted partner for all your business-related needs. Contact us today to learn more about our services or speak directly with our business attorney. ## Our Successful Cases Business ### [Conducting Voluntary Disclosures for Export Control Violations](https://sequoialegal.com/case/no-penalty-voluntary-disclosures-to-us-gov) Sequoia Legal guided a tech company through voluntary disclosure of export violations, avoiding penalties and preserving market access. We led internal investigations, submitted filings to BIS and DDTC, and implemented corrective actions to strengthen compliance and demonstrate proactive governance. Business ### [Implementing Robust FCPA and Export Compliance Programs](https://sequoialegal.com/case/fcpa-export-compliance-programs-launched-in-6-months) Sequoia Legal developed custom FCPA and export compliance programs for a global manufacturer, enabling international expansion, regulatory approval, and risk mitigation. The programs earned praise from authorities and empowered employees to uphold ethical practices across operations. Business ### [Assisting in the Sale of a Technology Startup](https://sequoialegal.com/case/startup-sale-deal-completed-2-months) Sequoia Legal advised a tech startup on its successful sale to a larger company, handling deal structuring, due diligence, and negotiations. The founders secured a strong valuation, key staff were retained, and the acquirer integrated the startup’s technology smoothly and strategically. --- Sequoia Legal — [https://sequoialegal.com/case/search-fund-acquisition-growth-manufacturing](https://sequoialegal.com/case/search-fund-acquisition-growth-manufacturing)