Once the entrepreneur has decided that the search fund model is the right path for them to buy and operate a small business, the searcher creates a partnership entity and raises capital. Selecting the right partners is key. Searchers surround themselves with an extensive network of investors across the country with diverse backgrounds and skillsets. The entrepreneur’s main goal is to assemble a team of investors, experienced operators, and industry experts that will support them (financially) and with mentorship throughout the entire process.

The goal of the search fund entrepreneur is to acquire and successfully manage one business. During the search process entrepreneurs will cast a broad net across industries and geographies to find the right acquisition target. The businesses are historically profitable, have high margins, and have scale. The target businesses are not turnarounds or start-ups.

Upon identifying a business to acquire the entrepreneur raises the capital from their investor base as well as industry experts. Together the entrepreneur and investors will acquire the business. The searcher becomes CEO of the acquired business.

The search fund entrepreneur (now CEO) relocates to the community where the business is located. The CEO fully immerses into the business (and the community) to learn about the employees, customers, and the industry. The CEO works closely with the previous owner to ensure a smooth transition. The CEO then focuses fully on growing the Company to provide opportunity for all stakeholders.