Fundamentals of Entrepreneurship through Acquisition

Name: Fundamentals of Entrepreneurship through Acquisition
Rating: 4.4 (61 reviews)

Accelerating entrepreneurial achievement via Search Funds

Created byNewton Campos

Last updated 12/2023

English

English [Auto],

What you'll learn

Entrepreneurship through Acquisition and the economics behind it.
Country and industry evaluation, acquisition criteria and Search Capital raising.
Searching, performing due diligences and raising Acquisition Capital.
Managing, creating value, making new acquisitions and exiting the acquired business.

Course content

5 sections • 35 lectures • 2h 35m total length

How did I come across Search Funds?2:24
Which are the topics to be covered by this course?2:34
Explore four modules that structure entrepreneurship through acquisition, from understanding ETA and preparing for a search to acquiring and growing a business.
Why attending this course?3:09
Who is Newton?3:07
Discover how Newton's journey—from Brazilian small businesses and technology roots to an MBA and PhD—highlights fundraising and search funds in entrepreneurship through acquisition.

First quiz time!0:26
Before starting the Quiz and the following lectures you have to read the Appendix A of "2022 Search Fund Study" (Stanford Case E-807, July 2022), available for download.
Quiz 1
The Search Fund as an asset class10:24
Position search funds as an asset class between private equity and venture capital. They invest by acquiring participation in companies, offering low risk and higher returns than private equity.
Property or ownership in Search Funds9:01
Understand how ownership builds in search funds. From 8–10% equity for locating and closing, to staged gains and a final sale around 30%.
The steps of a Search Fund7:11
Extra content: The Founder's Dilemma (Rich versus King/Queen)5:08
Explore the founder's dilemma, contrasting rich versus king/queen entrepreneurs, and learn how ownership dilution with investors and employees can drive bigger, more valuable companies.

Second quiz time!0:22
Before starting Quiz 2 and subsequent lectures you have to read Parts I, II and III of "A Primer on Search Funds" (Stanford, May 2021), available for download.
Quiz 2
Perform a country evaluation6:10
Perform industry and company evaluation9:48
Explore evaluating industry opportunities and identifying healthy companies for acquisition using the Rule of 40, balancing growth and EBITDA margins in the search funds.
Map your entrepreneurial pool of resources9:45
Establishing acquisition criteria8:48
Establish growth-focused acquisition criteria for search funds, prioritizing expanding revenue, healthy EBITDA margins, few founders or partners, at least $1 million profit, and stable, fragmented markets with value-adding opportunities.
Preparing for Search: capital raising11:59
PPM time6:28
Please use the document "PPM INTERNATIONAL STANDARD (NEWTON CAMPOS, DEC 2022)" in combination with the Stanford's Primer template attached here to develop your own PPM.

Third quiz time!0:21
Before starting Quiz 3 and subsequent lectures you have to read Parts IV and V of "A Primer on Search Funds" (Stanford, May 2021), available for download.
Quiz 3
Step Up3:36
Explore the transition from search to acquisition in entrepreneurship through acquisition, detailing investor step up rights, 50% returns, and ownership considerations in a real world example.
The challenges of searching2:06
Dealing with brokers3:49
Signing documents2:26
Performing due diligences2:50
Perform due diligence with professionals to verify a target company's numbers through accounting reviews, product and technology checks, and legal assessments, addressing informal operations in developing economies.
Take care when using the word "deal"2:26
Take care when using the word 'deal' and reframe closings as agreements that phase the company, honor the seller, and consider which investors pay for the acquisition.
Closing the acquisition1:35
Close the acquisition by meeting with sellers, signing documents, and transferring funds with lawyers and investors. Celebrate the milestone as you become CEO and begin growing what has been built.
After the acquisition5:25
The value creation phase3:09
PPM time2:08
Please use the document "PPM INTERNATIONAL STANDARD (NEWTON CAMPOS, DEC 2022)" in combination with the Stanford's Primer template attached here to develop your own PPM.

Fourth quiz time!0:21
Before starting Quiz 4 and subsequent lectures you have to read Parts VI and VII of "A Primer on Search Funds" (Stanford, May 2021), available for download.
Quiz 4
The main activities of a CEO2:13
Grow the acquired company by thinking, acting, and behaving like an entrepreneur; the first year builds processes and hires key people to set strategic direction for growth.
The entrepreneur and role of a CEO8:41
Explore Schumpeter's five classic entrepreneur definitions, creating new products, markets, suppliers, sales methods, and organizing sectors, plus the Oslo manual, guiding a ceo of an acquired company toward accelerated growth.
The importance of accounting, technology and ESG5:11
Considering new acquisitions4:05
Explore how seasoned CEOs evaluate and pursue new acquisitions to fuel growth. Learn how to manage post-acquisition integration and consider building an innovation team to explore disruptive technologies.
Exiting moment3:32
PPM time3:25
Please use the document "PPM INTERNATIONAL STANDARD (NEWTON CAMPOS, DEC 2022)" in combination with the Stanford's Primer template attached here to develop your own PPM.
Closing remarks1:29
Please use the following links to set up your free session with me or my team.

Requirements

Familiarity with business vocabulary is desired.
Finance knowledge is not required.
Investment Banking or Private Equity knowledge is not required.

Description

The course will benefit those who intend to become entrepreneurs through acquisition, want to work in Private Equity, Venture Capital, M&A, Corporate Venture or want to learn more about acquiring private companies. Acquiring companies is becoming a helpful skill in current corporate jobs as well, as Corporate Venture Capital and Corporate M&A pop up around the world and big companies like Google, Microsoft, or Apple, for example, are constantly acquiring other businesses.

As a researcher on the topic and an active investor in the Search Fund, I strive to make the course as accurate as possible. We will use the so-called "bible" of Research Funds (Search Fund Primer, Stanford, 2021) as our leading reference guide, as well as videos and quizzes to learn the main concepts behind Entrepreneurship through Acquisition. Finally, you will be able to develop your Business Plan (called PPM in Search Funds) throughout or after the course.

Learning is cumulative. Therefore, each module will introduce new concepts and vocabulary while reinforcing previously discussed topics without being repetitive. The course is structured to include mainly practical explanations but also a few theoretical ones. By the end of the period, students will be intellectually equipped and experienced to enrich or lead projects within the domain of Entrepreneurship through Acquisition.

Structured in 4 modules plus a Final Presentation, the course will cover the following:

1) Entrepreneurship through Acquisition (EtA) and economics behind it.

2) Country and industry assessment, criteria for acquiring and raising Search Capital.

3) Search, conduct due diligence and raising Acquisition Capital.

4) Management, value creation, new acquisitions, and exiting the acquired business.

LEARNING OBJECTIVES

After the program, students should have developed a new set of skills and knowledge:

1. Students should be able to identify critical aspects of Entrepreneurship through Acquisition, becoming able and motivated to critically analyze the opportunities to acquire a business in an entrepreneurial way throughout their professional lives.

2. Students must be able to use the basic vocabulary used in Entrepreneurship through Acquisition.

3. Students should be able to estimate what skills or knowledge they may lack to initiate a Search Fund, management buyout, or corporate M&E strategy.

Who this course is for:

Professionals from approximately 25 to 45 years of age who seek financial support to search and acquire Small and Medium size Enterprises (SMEs) with potential to grow via entrepreneurial management.
Investors with Venture Capital, Private Equity or Entrepreneurial experience willing to learn about Search Funds as a growing asset class.
Family Offices and institutional investors willing to better understand the asset class and how to invest in funds that invest in Search Funds.
Founders or owners of Small and Medium size Enterprises (SMEs) willing to understand how the legacy of their companies can be protected and expanded without their presence and under a Search Fund management team.
Professionals willing to help scaling up Small and Medium size Enterprises (SMEs) acquired by a Search Fund.
Executives or directors of Small and Medium size Enterprises (SMEs) interested in acquiring and leading the companies they work or worked for.
Board members willing to help scaling up Small and Medium size Enterprises (SMEs) acquired by Search Funds.
Tax authorities, managers of public entities or formulators of public policies towards risk capital and venture capital investments.
Due Diligence and Mergers & Acquisitions (M&A) lawyers and accountants.
Business brokers, Mergers & Acquisitions (M&A) consultants or strategic consultants.

Fundamentals of Entrepreneurship through Acquisition

What you'll learn

Explore related topics

Course content

Module 0 - Opening Module4 lectures • 11min

Module 1 - Understanding Entrepreneurship through Acquisition5 lectures • 32min

Module 2 - Preparing for a Search7 lectures • 53min

Module 3 - Acquiring a Business11 lectures • 30min

Module 4 - Growing a Business8 lectures • 29min

Requirements

Description

Who this course is for: