Search fund equity structure modeller
Compare two structures for the same deal and see what the searcher takes home at exit. Free with an ExitRadar account.
Compare two structures for the same deal and see what the searcher takes home at exit. Free with an ExitRadar account.
On a sale, the investors’ preference shares are paid first: the money invested plus the coupon, simple or compounding annually. Whatever is left goes to the ordinary shares, split between the searcher and the investors. With a ratchet, the searcher’s share of the ordinary rises as the investors’ IRR passes a hurdle, and after year five a money-multiple test can apply as well.
The starting structures are patterns from the ten deals in our study of UK search fund equity splits, read from the holding companies’ filed articles of association.