No Bargains on Your Equity! Part 2: SPACs, (search) funds, and deal-by-deal

Part one of our series laid bare the tension between rollup founders and investors when it comes down to the platform value add at various stages, and the corresponding markup over the invested capital. 

It would be a disservice to the serial acquirer community if we skipped the less common, but not less interesting structures, namely: 

• Fund (GP / LP)

• Search Fund

• SPAC / RTO

• Deal-by-Deal

We conclude the article with the Tern Capital / CCube case study: a £2M acquisition of a UK healthcare VMS business executed in a deal-by-deal structure.

Fund structure (GP / LP)

On the surface, the fund setup is great. No pre-money valuation drama. No agony over secondaries. No corporate governance conundrum. 

However, the downsides are formidable as well. 

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