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Search Fund (Traditional 2-Stage) — Investor-Backed Acquisition

Raise $400–600K from 10–15 investors to fund a 2-year search, then acquire and run a $5–30M business.

Overview

The traditional search fund model (Stanford GSB origin): Stage 1 — 10–15 investors each put $30–50K for your 2-year search salary + expenses; each earns right (not obligation) to invest pro-rata in the eventual acquisition + 50% common share step-up. Stage 2 — investors fund the $5–30M acquisition (equity + SBA/senior debt), searcher receives 20–30% common equity vested over time based on performance. Median outcome ~$5–10M to the searcher after 5–7 years.

Best fit
MBA grads / operators with acquisition intentFirst-time CEOs$100K–$500K net worth searchers
Estimated impact
0 down payment path to $5–30M business ownership

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