Search Fund Fundamentals: A Complete Introduction

Welcome to the very first episode of the Searchers podcast! In this foundational episode, we explore everything you need to know about search funds and why they’ve become such a compelling path for aspiring entrepreneurs.

What We Cover

The Search Fund Model

• What exactly is a search fund?
• How the two-step fundraising process works
• Why investors are attracted to this model
• The role of the searcher vs. traditional entrepreneurs

Key Statistics and Trends

• Growth in search fund activity over the past decade
• Success rates and typical returns
• Average deal sizes and target companies
• Geographic distribution of search funds

Guest Insights from Sarah Johnson

Our guest Sarah Johnson shares her experience as a successful searcher who acquired a B2B services company in Ohio. Sarah discusses:

• Her background and why she chose the search fund path
• The fundraising process and investor relationships
• The 18-month search journey and lessons learned
• Operating the business post-acquisition

Key Takeaways

1. Search funds aren’t just for MBAs - While business school helps, operational experience and industry knowledge can be equally valuable
2. Investor relationships are crucial - Your investors become your board and mentors
3. The search process is a job in itself - Expect to evaluate 200+ businesses before finding the right one
4. Industry focus matters - Having a clear thesis and target market increases success rates

Resources Mentioned

• Stanford Search Fund Primer
• “Buy Then Build” by Walker Deibel
• Search Fund Accelerator programs
• Industry conferences and networking events

Next Episode Preview

Join us next time as we dive into the due diligence process with M&A attorney Mike Chen, who’s facilitated over 50 search fund acquisitions.

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