What is the difference between a traditional search fund, a self-funded search fund, and what WCP is doing?

A traditional search fund raises capital from outside investors in order to fund the search period, which is typically 2 years. Those investors then receive a right of first refusal to invest in the company the searcher identifies and additionally they receive a 50% step up on the initial search capital they invested (i.e. for every $1 they invested, they received $1.50 of securities in the newly acquired company). A self-funded search does not raise capital to fund the search period, and it may or may not raise capital to acquire a business once that business has been identified. WCP is more like a self-funded search in that we are not raising capital to fund our efforts to find a great business to acquire, but we do have some distinct differences from self-funded searches a well. In particular our holding period (we intend to own the business indefinitely) and company size (self funded searchers tend to buy smaller businesses than what we are looking for). Of course, there is a lot more nuance, which we’re happy to discuss individually if you’re interested.

Are partnerships common for buying a company?

According to the 2022 Stanford Search Fund Study, about 40% of traditional search funds are partnered searches with the remaining 60% being solo searches. That data does not include self-funded searches because that data is difficult to find. The Stanford study shows that partnered searches return superior financial results.

What is the timeline to buy a company?

We intend to acquire a great business no later than fall 2024.

Do you have committed capital?

WCP has committed capital from family offices in the midwestern US. In addition, we have developed relationships with debt providers. We have the ability to close quickly.

Would you consider companies outside of the requirements listed under the 'Our Process' tab?

We are happy to explore options outside of what’s listed on Our Process. Our primary goal is to find a great business. Everything else is negotiable.

What are you going to do when you buy a company?

This is highly dependent on the company we acquire, but our intention is to do nothing for the fist 90 days. Since we are in the market for a great business, we don’t plan to change anything initially, and instead will spend most of our initial transition time meeting with employees, customers, and vendors so that we can gain an intimate understanding of the business. As the old saying goes, if it ain’t broke, don’t fix it. We are not interested in turnaround situations.

How do I get in touch with you to have a further conversation?

Please reach out using the form on the Contact Us page.

Who else is involved?

We have an advisory board made up of successful entrepreneurs, CEOs, dealmakers, and academics.

Why the name Willow?

The Willow Tree represents many of our shared values and the mindset we want to bring to a company -- graceful; inspired; flexible; persistent; wise; creative; soulful; passionate.

Additionally, the beginning and ending W is a reminder of where we each came from. Ingrid from Wisconsin and Chris from Wyoming. The midwestern values that we each grew up with are our guiding compass in both life and business.