What are the best sectors and niches for the Searchfund model?

Both replies make excellent points about the importance of strategic thinking over personal interests when selecting a sector. I would add that, beyond operational ease and scalability, another key factor is understanding the market dynamics and competitive landscape. Ideally, you'd want to look for industries that are either fragmented or ripe for professionalization, where adding better processes, technology, or customer experience can create significant value. Additionally, sectors with recurring revenue models or long-term customer relationships tend to offer more predictability and resilience, which can be critical when scaling a business post-acquisition. Ultimately, the right sector should combine ease of operations, growth potential, and opportunities for differentiation in a sustainable way

The "better" a sector is for the model, the higher it'll drive the multiple, so I would encourage you to do your own assessment of a) what you and / or your operator have capabilities and interests in b) the current state of that sector as far as multiples vs realistic returns and c) your expectations of where those sectors will go. Focus less on what the rest are doing and more on what is right for you.