Stek advised SaloMonte Partners, a search fund led by Duco Salomons, in the successful acquisition of Hotek Hospitality Group (“Hotek”). This transaction marks a significant milestone as it represents the first acquisition in the Netherlands executed through a search fund.
Entrepreneurship through acquisition
The acquisition was achieved using the “Entrepreneurship Through Acquisition” (ETA) model, commonly known as a search fund. This model enables entrepreneurs to search for, acquire and lead a business with the support of investors. This route offers a unique alternative for (often young) entrepreneurs to the corporate career ladder or the challenges of launching a startup.
The journey to acquire Hotek
In the fall of 2023, Stek advised SaloMonte Partners in establishing its search fund structure. Backed by his investors, Duco Salomons embarked on an extensive search for a suitable acquisition target. Over the course of 14 months, with the assistance of a dedicated team of interns, he conducted a comprehensive analysis of thousands of companies before deciding on Hotek as the ideal acquisition target.
Search fund model: a new trend in the Dutch market
Duco Salomons’ acquisition of Hotek is particularly noteworthy as it sets a precedent for the Dutch market, being the first transaction carried out via a search fund. This model is rapidly gaining momentum in the Netherlands. Internationally, the search fund model is already well-established.
Looking ahead
We are excited to have played a role in this transaction and look forward to seeing how Duco leads Hotek into its next phase of growth.
