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Welcome to Searchfunder

The community dedicated to buying profitable businesses

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What is a search fund?

A "search fund" or "searchfund" is an entity set up for the acquisition of a single business. It is one of the fastest and most reliable ways for an ambitious manager to become the CEO of a sizable company.

These managers are known in the community as "searchers". Because searchers are usually first time CEOs, they surround themselves with a network of experienced investors and advisors who not only provide financial backing but also help to run the acquired companies.

Searchers generally bring only minimal capital to the deal. Their value lies in their leadership and ability to source and close the transaction. The deals are mostly funded through a combination of debt and outside capital.

The idea of taking relatively younger professionals and mentoring them into CEO roles can be credited to Stanford professor H. Irving Grousbeck who funded the first searcher in 1984.

Who launches search funds?

Once upon a time, searchfunds were an exclusive club only available to graduates of Stanford GSB and Harvard Business School. Today, the model is taught at most of the top MBA programs around the world.

The investors and lenders have grown from a select group of high net worth individuals tied to Harvard and Stanford, to hundreds of private investors, family offices, and private equity firms willing to back individual buyers.

Outside of top business schools, searchers come from various backgrounds. What unites them is the desire to be company owners and the acumen necessary to be successful CEOs.

Timeline of a search

LEARN - Decide if searching is right for you. Courses are taught at top MBA programs but many searchers learn by doing or by interning with current searchers.
1 - 6 months
SETUP - Create a legal entity, usually an LLC in order to perform the acquisition. Start outlining your sourcing strategies and researching industries of interest.
1 - 2 months
NETWORK - Reach out to potential investors, advisors, brokers, and debt providers. You will need a deep bench to signal to potential sellers your ability to fund the deal and run the business.
Do this throughout your search
SEARCH - Find a company to acquire. Most searchers will use a combination of business brokers and proprietary networking to source deals. Do not get discouraged, the average searcher will contact thousands of sellers to find the right deal.
1 - 3 years
OWN - Buy a company. Perform diligence and raise the capital necessary to complete the transaction. Then run and grow it as the CEO. This is where value gets created.
2+ years
EXIT - If successful, you could sell the company for many times the purchase price. On average, searchers will hold on to the company for 8 years. However, some may choose to stay and run their businesses forever. Many successful searchers become the next generation of investors in future searches.
Ride off into the sunset

Searching is better together.

See what Searchfunder members have achieved.

6,498
Active Members
1,158
Companies Acquired
$3B+
Capital Raised

Frequently asked questions

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get discounted rates on purchasing contact information for your company sourcing campaign. Searchfunder provides the resources to individuals buyers to level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is free if you post. This means we charge a monthly fee but if you contribute to the community by making a post or answering someone else's post, you will earn free months in the future. This way, the most helpful members who build up the community are the most rewarded.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs. Searching is no longer reserved for the elite. With record abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.