Top 15 U.S. Search Fund Target Sectors, A 2024-25 Snapshot

Each line: Industry | Share of Recent Search-Fund Deals | Typical EBITDA Multiple | Key Upside Signal Healthcare Services | ≈ 25 % | 6-9× | noncyclical demand, Medicare tailwinds B2B Business Services | ≈ 25 % | 5-7× | contract revenue, fragmented competitors Software & SaaS | ≈ 22 % | 8-10× | high gross margins, sticky subscriptions Tech Enabled Services | ≈ 16 % | 6-8× | platform leverage with service cash flow Niche Manufacturing | ≈ 10 % | 5-6× | specialized parts, high switching costs Value Added Distribution | ≈ 9 % | 5-7× | repeat orders, light assembly premium Transportation & Logistics | ≈ 8 % | 5-7× | ecommerce volume plus route contracts Environmental & Energy Services | ≈ 7 % | 6-8× | ESG mandates drive recurring work Telecom Infrastructure Services | ≈ 6 % | 6-7× | 5G rollout fuels multiyear backlog E-Commerce Support | ≈ 6 % | 6-8× | fulfillment capacity shortage gives pricing power Niche Consumer Products | ≈ 4 % | 5-7× | loyal direct-to-consumer followings Specialized Construction & Contracting | ≈ 4 % | 4-6× | maintenance contracts smooth cycles Financial & Insurance Services | ≈ 3 % | 6-7× | renewable commission streams, low capex Home Services | ≈ 3 % | 3-5× | geographic moats, route density boosts margin Compliance Driven Niche B2B Services | ≈ 3 % | 5-6× | mandated testing keeps churn near zero Golden Nugget Niches for First-Time Searchers Local home maintenance and repair: driveway sealing, pest control, pool care, 3-5× multiples, high repeat revenue, retiring owners Specialized trades and installation: small HVAC or fire safety firms with service contracts, often below $2 M EBITDA, succession gaps everywhere Niche B2B manufacturing: precision CNC parts or specialty food ingredients, 5-6× multiples, multiyear supply agreements, modest capex Compliance and testing services: safety inspection or calibration labs, revenues backed by regulation, minimal private-equity competition