"Preparing a private placement memorandum (PPM) to share with potential investors is typically the first step for most searchers as they begin their search journeys. A PPM is, in essence, an introduction to the searcher and the search fund.
Needless to say, search fund investors, especially those who have been in the industry long term, probably review countless PPMs on a regular basis. In our experience, these investors tend to focus primarily on the searcher’s biography and background, along with any notes on industry specialization. They may also be especially attentive to any anomalies in designated geography, targeted industries (i.e., new or niche spaces), and the few post-acquisition investment terms that appear in a PPM (e.g., catch-up, vesting terms, board designees, etc.).
Generally, investors are looking for individuals who can demonstrate a strong combination of skills, experience, and personal qualities to successfully search for, acquire, and manage a business that will generate attractive returns on their investment. The specific criteria may vary from one investor to another, but these factors are generally important considerations in the evaluation process."