Fuel Systems Sales & Installation Company
NA, US, Northeast, NJ
Cash Flow: $1,200,000
Revenue: $6,800,000
Full-Service Marketing Agency
NA, US
Cash Flow: $1,300,000
Revenue: $7,000,000
Insurance Restoration Business
NA, US, South Central, TX
Cash Flow: $1,500,000
Revenue: $7,100,000
Machine Shop
NA, US, Southeast, SC
Cash Flow: $1,000,000
Revenue: $5,000,000
Importing, Distribution & Turnkey Restoration
NA, US, Southeast
EBITDA: $1,100,000
Revenue: $8,000,000
Electrical Service Company
NA, US, South Central, TX
Cash Flow: $2,300,000
Revenue: $11,300,000
Landscaping & Farm Equipment Dealer
NA, US, Northeast, ME
Cash Flow: $900,000
Revenue: $6,600,000
Tree Trimming Service
NA, US, Southwest, NV
Cash Flow: $1,000,000
Revenue: $2,400,000
Auto Customization Business
NA, US, South Central, TX
Cash Flow: $1,200,000
Revenue: $5,200,000
Oilfield Services Business
NA, US, Southwest, CO
Cash Flow: $1,300,000
Revenue: $34,500,000
An overview of Searchfunds
A search fund serves as an investment vehicle, allowing investors to support entrepreneurs in the sourcing, purchasing, operation, and expansion of privately held companies.
This entrepreneurial approach, known as Entrepreneurship Through Acquisition (ETA), entails acquiring and expanding established small or medium enterprises (SMEs) with proven product-market fit. Individuals seeking businesses to acquire, referred to as searchers, also act as the principals of the fund.
Explore the Search Fund Journey Embarking on a search fund journey involves forming an investment vehicle with aligned investors. Positioned as an alternative investment category, these funds offer a lower-risk path for both entrepreneurs and investors, leveraging the success and recurring revenue of established enterprises. This creates a unique opportunity for new MBA graduates to step into the CEO role of a thriving enterprise, allowing them to "accelerate the car rather than build it."
Historical Development Originating at Harvard Business School in 1984 and further refined at the Stanford Graduate School of Business, the search fund model has gained global popularity. Professor H. Irving Grousbeck, credited with its development, has paved the way for aspiring entrepreneurs.
Early Success Story: Nova Capital One of the pioneers in this domain is Nova Capital, founded by Jim Southern in 1984. Southern's successful acquisition and growth of Uniform Printing, generating a remarkable return of over 24x a decade later, showcase the potential of this model.
Navigating the Fund Lifecycle The fund's lifecycle unfolds across four stages:
Fundraising
Search and acquisition
Operation and value creation
Exit
Fundraising involves a two to six-month process where principals raise funds from potential investors, categorizing capital into search and acquisition funds. Search capital covers expenses like office rent and travel, facilitating the search process.
Generating Deal Flow The search and acquisition stage, lasting twelve to twenty-four months, explores brokered and proprietary deals. Brokered deals involve businesses actively marketed through brokers, while proprietary deals, though more tedious, offer cost-effective opportunities through targeted outreach.
Insights into the Ideal Target Ideal acquisition targets exhibit characteristics related to industry, company, and finances. Key considerations include industry fragmentation, low cyclicality, consistent profitability, and financial metrics such as revenue between $5m and $50m.
Fund Economics and Value Creation Economic returns are driven by the structure of manager equity, investor capital, and value creation. Manager equity vests based on acquisition milestones, while investor capital is infused in search and acquisition stages.
Value creation hinges on operational improvements, financial engineering, and valuation multiples. Operational enhancements include organic and inorganic growth, while financial engineering addresses capital structure and cost considerations.
Examining Fund Returns According to the Stanford 2022 search fund study, these funds boast a historical average internal rate of return (IRR) of 32.6% and a 5.5x multiple on invested capital. However, a third of searchers faced challenges in identifying and acquiring businesses despite dedicated efforts.
Diverse Investment Landscape Numerous small investment companies specialize in supporting such funds, with examples including Anacapa Partners, Aspect Investors, and Search Fund Partners. Alternative models, like sponsored search, incubated search, self-funded search, and crowdfunded search, offer varied approaches to entrepreneurship through acquisition.
In summary, a search fund serves as a strategic investment vehicle, aligning investors and entrepreneurs in a journey of acquiring and growing established businesses, minimizing risks and maximizing opportunities for success.
X5Deals sourcing, weekly new deals update for Private equity and Searchfunds, 2 months free trial. use "20x" and get 20% off #X5deals #dealflow #privateequity #EBITDA
Dental Practice
NA, Canada, West Coast, BC
Cash Flow: $900,000
Revenue: $1,400,000
Distribution Wood Products
NA, US, Southeast, FL
Cash Flow: $2,600,000
Revenue: $6,400,000
Franchise Commercial Landscape Business
NA, US, Southeast, SC
Cash Flow: $900,000
Revenue: $4,100,000
Electrical Contractor
NA, US, Midwest
Cash Flow: $5,100,000
Revenue: $12,800,000
Automotive Parts Manufacturing And Assembly Business
NA, US, South Central, TX
Cash Flow: $1,000,000
Revenue: $4,500,000
Skilled HomeCare Business
NA, US, Northeast, CT
Cash Flow: $2,900,000
Revenue: $22,000,000
Electrical Engineering Firm
NA, US, West
EBITDA: $1,000,000
Revenue: $2,800,000
Dental Practice
NA, Canada, Central Canada, ON
Cash Flow: $2,100,000
Revenue: $6,000,000
Precision Sheet Metal Fabricator for Aerospace Industry
NA, US
EBITDA: $2,200,000
Revenue: $9,000,000
UPS Power Supply Manufacturer
NA, US
EBITDA: $1,100,000
Revenue: $9,000,000
X5Deals Deal Flow: Revolutionizing Private Equity and Searchfunds with Unparalleled Deal Sourcing
Greetings dealmakers and investors! Today, we're delving into the game-changing realm of X5Deals Deal Flow—a powerhouse platform that is reshaping the landscape of deal sourcing for private equity and search funds. Buckle up as we explore how X5Deals is becoming the go-to destination for those seeking a competitive edge in the world of high-stakes investments.
A New Era of Deal Sourcing:
X5Deals Deal Flow isn't just a platform; it's a paradigm shift in how private equity firms and search funds source deals. Traditional methods often involve a complex web of contacts, intermediaries, and extensive research. X5Deals changes the game by centralizing the deal-sourcing process, streamlining it for efficiency and effectiveness.
Unrivaled Deal Variety:
In the world of private equity, diversity in deal options is key. X5Deals Deal Flow boasts an expansive portfolio of opportunities spanning industries and sectors. Whether you're eyeing tech startups, established businesses, or niche markets, the platform's diverse deal flow ensures that investors have a wealth of options at their fingertips.
Real-Time Deal Insights:
Timing is everything in the world of investments. X5Deals Deal Flow provides real-time insights into emerging opportunities. With up-to-the-minute data on deals in the pipeline, investors gain a competitive advantage, allowing them to act swiftly and decisively. The platform's analytics tools empower users to make informed decisions based on current market trends.
Efficiency Redefined:
Gone are the days of sifting through mountains of data to find the needle in the haystack. X5Deals Deal Flow employs advanced algorithms and smart filters to match investors with deals that align with their criteria. This efficiency not only saves time but ensures that investors are presented with opportunities that genuinely fit their investment strategy.
Tailored for Searchfunds:
Searchfunds, which are on the rise in the world of entrepreneurial finance, find a tailored ally in X5Deals Deal Flow. The platform caters to the unique needs of searchers, providing them with a treasure trove of acquisition opportunities, mentorship possibilities, and a community where knowledge is shared and connections are forged.
Strategic Networking Opportunities:
X5Deals Deal Flow isn't just about deals; it's about fostering a community of like-minded individuals. Investors, entrepreneurs, and industry experts converge on the platform, creating a space for networking, collaboration, and the exchange of valuable insights. The power of community-driven intelligence enhances the overall deal-sourcing experience.
Security and Confidentiality:
Recognizing the sensitivity of deal information, X5Deals Deal Flow places a premium on security and confidentiality. Robust encryption and secure data handling protocols ensure that sensitive information is protected, giving investors peace of mind as they explore potential opportunities.
In conclusion, X5Deals Deal Flow is more than a platform; it's a dynamic force that is reshaping the landscape of deal sourcing for private equity and search funds. With its unparalleled variety of deals, real-time insights, and commitment to efficiency, X5Deals is setting a new standard for investors seeking success in an ever-evolving market. Step into the future of deal sourcing with X5Deals Deal Flow—where opportunities meet innovation.
X5Deals sourcing, weekly new deals update for Private equity and Searchfunds, 2 months free trial. use "20x" and get 20% off #X5deals #dealflow #privateequity #EBITDA
Wholesale Kitchen and Bath Countertop Fabrication
NA, US, Northeast, CT
Cash Flow: $2,500,000
Revenue: $9,200,000
Automotive Parts Manufacturing And Assembly Business
NA, US, South Central, TX
Cash Flow: $1,000,000
Revenue: $5,400,000
Real Estate & Private Lending Company
NA, US, Midwest, IA
Cash Flow: $1,100,000
Revenue: $2,500,000
eCommerce Brand in the Firearms Parts & Accessories Sector
NA, US, Southeast, FL
Cash Flow: $1,400,000
Revenue: $4,200,000
Regional Provider of Print Finishing & Packaging Services
NA, US
EBITDA: $2,600,000
Revenue: $15,300,000
Fence Contractor & Supplier
NA, US, Northeast, NJ
Cash Flow: $1,900,000
Revenue: $5,500,000
Supermarket
NA, US, Northwest, NV
Cash Flow: $1,500,000
Revenue: $6,000,000
Auto Rental Recovery Business
NA, US, South Central, TX
EBITDA: $4,900,000
Revenue: $16,200,000
Commercial General Construction and Development Company
NA, US, Southwest, UT
EBITDA: $3,600,000
Revenue: $31,000,000
Halal Restaurant
NA, US, Northeast, NY
Cash Flow: $1,200,000
Revenue: $2,400,000
X5Deals sourcing, weekly new deals update for Private equity and Searchfunds, 2 months free trial. use "20x" and get 20% off #X5deals #dealflow #privateequity #EBITDA
Supplement eCommerce Business
NA, US
Cash Flow: $1,200,000
Revenue: $7,300,000
Environmentally Responsible HVAC and Energy Management Business
NA, US, Southeast, FL
EBITDA: $2,300,000
Revenue: $18,900,000
Digital Product Company
NA, US, Southeast, FL
Cash Flow: $1,300,000
Revenue: $5,200,000
Dental Practice
NA, Canada, Central Canada, ON
Cash Flow: $1,400,000
Revenue: $2,700,000
Amazon + Multi-Channel Home & Garden Brand
NA, US
Cash Flow: $1,600,000
Revenue: $5,800,000
Freight Trucking Company
NA, US, Midwest, IL
Cash Flow: $2,600,000
Revenue: $22,000,000
Manufacturer of Temperature, Dew Point, RH, and Oxygen Sensing Instrumentation
NA, US, Northeast
EBITDA: $1,500,000
Revenue: $3,300,000
Dental Practice
NA, Canada, Prairie Provinces, MB
Cash Flow: $1,500,000
Revenue: $2,500,000
Plant-Based Supplements Brand
NA, US
Cash Flow: $1,100,000
Revenue: $2,600,000
Top Attorney Placement
NA, US, Northeast, MA
Cash Flow: $1,100,000
Revenue: $1,700,000
X5Deals sourcing, weekly new deals update for Private equity and Searchfunds, 2 months free trial. use "20x" and get 20% off #X5deals #dealflow #privateequity #EBITDA
Multi-Sector Contractor
NA, US, Northwest, AK
Cash Flow: $1,400,000
Revenue: $5,500,000
Medical Collections Agency
NA, US, Northeast, NY
Cash Flow: $1,300,000
Revenue: $5,500,000
eCommerce Brand in Kids Outdoor Recreational Product
NA, US, Southeast, FL
Cash Flow: $4,300,000
Revenue: $21,400,000
Gun Retailer
NA, US, Northeast, NJ
Cash Flow: $2,200,000
Revenue: $17,300,000
Steel and Aluminum Sheet and Long Product Processor and Distributor
NA, US
EBITDA: $16,200,000
Revenue: $157,600,000
Re-Roofing Contractor
NA, US, Southeast, GA
EBITDA: $2,200,000
Revenue: $16,300,000
Independent Lens Manufacturer
NA, US, Northeast
EBITDA: $2,000,000
Revenue: $6,200,000
Military & Patriotic Focused eCommerce Brand
NA, US, Southeast, FL
Cash Flow: $1,200,000
Revenue: $6,300,000
Specialty Packaging Company
NA, US, Northeast, NY
EBITDA: $1,500,000
Revenue: $6,500,000
Retail Liquor Store
NA, US, South Central, AR
Cash Flow: $800,000
Revenue: $1,800,000
X5Deals sourcing, weekly new deals update for Private equity and Searchfunds, 2 months free trial. use "20x" and get 20% off #X5deals #dealflow #privateequity #EBITDA
Custom, Wearable Art Apparel Brand
NA, US, Southeast, FL
Cash Flow: $1,000,000
Revenue: $5,300,000
State-of-the-Art Digital Marketing Consultancy
NA, US
EBITDA: $900,000
Revenue: $13,100,000
Directional Boring & Trenchless Piping Contractor
NA, US, Southeast, NC
Cash Flow: $1,000,000
Revenue: $2,500,000
eCommerce Brand in the Custom Pet Portraits Vertical
NA, US, Southeast, FL
Cash Flow: $2,600,000
Revenue: $17,000,000
Dry Edible Bean Supplier / Distributor
NA, US
Cash Flow: $900,000
Revenue: $8,000,000
Technology Integrator in Niche Market
NA, US, Northeast, CT
Cash Flow: 1,100,000
Revenue: $2,600,000
Niche Home Services Provider
NA, US, Southeast, KY
Cash Flow: $900,000
Revenue: $4,800,000
IP/IT Solutions Provider to Municipalities, Schools & SMBs
NA, US
EBITDA: $1,600,000
Revenue: $7,700,000
Wet Utility Contractor
NA, US, West, CA
EBITDA: $3,000,000
Revenue: $20,500,000
Construction Company
NA, US, South Central, TX
Cash Flow: $900,000
Revenue: $2,100,000