Self funded search economics?

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May 05, 2026

by a searcher from York University in Montreal, QC, Canada

I am a solo search funder writing my investment thesis. I would like some help to propose defensible economics to my investors. I seek between 50% - 70% ownership at exit. However, I am not clear how to structure that offer at Entry. The rest of my funding will be 50-60% debt, maximum 10% selling financing, Equity 30%-40%. I need some help to understand what could be acceptable based on real life experience and what type of trade offs, incentives, strategies I could use to get there. Thank you so much.
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Reply by an investor
from McGill University in San Diego, CA, USA
These 3 videos might be helpful 1. https://www.linkedin.com/posts/granthensel_i-hear-from-3-5-searchers-a-day-who-want-ugcPost-7307799990968426498-HtDI/?utm_source=social_share_video_v2&utm_medium=ios_app&rcm=ACoAAANEbIsBllqyj3Gy2bqfUOuHOLPXDa5mup8 2. https://www.linkedin.com/posts/granthensel_step-up-is-the-most-confusing-term-in-self-funded-ugcPost-7310324902098583553-71iC/?utm_source=social_share_send&utm_medium=ios_app&rcm=ACoAAANEbIsBllqyj3Gy2bqfUOuHOLPXDa5mup8 3. https://acquiringminds.co/webinars/how-to-model-a-self-funded-sba-acquisition
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Reply by an investor
from University of Pennsylvania in New York, NY, USA
This might be a tough sell to most investors without a significant personal equity contribution (in addition to what I'm assuming will be personally guaranteed SBA debt), but you might be able to structure a deal that allows you to earn a majority stake in the business over time based on outstanding financial performance (e.g., if you reduce or eliminate the guaranteed time-based vesting component standard in most search deals, you might be able to negotiate higher overall performance-based equity awards with your investors that allow you to become the majority owner). That way, your investors are still able to get a very attractive return on their capital.
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