The entrepreneurial path to business ownership through acquisition
A search fund is an investment vehicle that enables entrepreneurs to acquire and operate a business through a structured process of raising capital, searching for acquisition targets, and executing a purchase.
Advantages for entrepreneurs and investors
Systematic approach to finding and evaluating acquisition targets
Access to significant capital for search and acquisition activities
Access to experienced investors and strategic advisors
Direct path to business ownership and operational control
Shared risk with investors and structured due diligence process
Clear exit strategy with potential for significant returns
How search funds work from formation to exit
Entrepreneur raises search capital from investor syndicate
Systematic search for acquisition targets (typically 18-24 months)
Identify and evaluate potential acquisition candidates
Comprehensive analysis and negotiation with target company
Execute acquisition with additional capital from investors
Entrepreneur operates business with investor support and guidance
Strategic exit through sale, IPO, or recapitalization
Characteristics of ideal search fund acquisition targets
How search fund economics work
$300K - $500K
Initial capital for search activities and entrepreneur salary
$5M - $50M
Capital for business acquisition and working capital
20-30%
Entrepreneur's equity participation in acquired business
Connect with search fund entrepreneurs and investors