Search Fund Financing

Search funds are experiencing significant growth, driven by increasing interest from young entrepreneurs and the support of seasoned investors. The model, originally developed at Stanford Business School, has gained traction worldwide, particularly in the United States. Search funds offer aspiring business owners a clear pathway to ownership by acquiring established companies with proven track records, making it a less risky alternative to traditional startups.

The growing popularity of this model is also fueled by a demographic shift, as baby boomer entrepreneurs reach retirement age, creating more opportunities for acquisitions. Business school graduates are increasingly drawn to the search fund model due to its blend of entrepreneurial opportunity and the guidance provided by experienced investors, leading to a steady rise in the number of search fund operators.

The SBA loan program, particularly the 7a loan, is a valuable resource for search funds seeking to finance acquisitions. With loan amounts up to $5 million, the 7a program helps searchers acquire established companies by offering long-term, low-interest financing. The flexibility of these loans allows for financing a variety of business needs, including working capital, equipment purchases, and real estate. First Bank of the Lake, with its expertise in SBA lending, provides tailored support for entrepreneurs navigating the search fund process. Their experience and connections help self-funded searchers access capital to acquire a business and get you and your loan to the finish line.