Search Fund Ventures
We buy profitable small businesses and run them better.
We look for businesses with ten years or more of profit, then improve them with better operations and software. We turn down most of the deals we see.
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Four tests every deal has to pass
If a business fails one of these, we pass.
Staying Power
Essential services, ten or more years of operating history, and a record through more than one economic cycle.
Incentive Alignment
The buyer and the investors share the same economics, the board has real oversight, and the operator can do the job.
Asymmetric Bet
A realistic path to a large return, with a conservative structure in case we are wrong.
Margin of Safety
We buy at prices that leave room for mistakes. Our portfolio averages a 3.9x purchase multiple, 15% below market, with credit metrics 24% less risky.
Underwriting
How we underwrite
We say no to almost every deal we see. The ones we keep go through four stages.
1
Diligence
We compare each deal with thousands of small businesses in our dataset: financials, multiples, capital structure and operator quality.
2
Planning
A 90-day transition plan, a management assessment and a roadmap, written before closing.
3
Execution
Hands-on help with operations, growth and add-on acquisitions, checked monthly against the plan.
4
Tech Enablement
Automation, AI, a modern CRM and better reporting. This is upside on a business that already makes money.
Hands-on partnership
Small on purpose
You deal with the partners directly, on every deal and every question.
- The managing partners answer your questions on every deal
- Regular portfolio reports
- Co-investment next to the fund, deal by deal
3.9x
Avg. Purchase Multiple (15% Below Market)
250+
Deals Reviewed
24%
Less Risky Credit Metrics
$11B+
Transaction Experience
22%
Less Burdensome Fees
Leadership
Leadership
Institutional finance and operating experience.
Sean Smith
Managing Partner
Institutional finance expertise from CIBC ($11B+ in transactions) and M&A advisory at Applico Capital.
View Full Bio →SFV Research
Research
What we read, write and talk about on small-business acquisitions.
Free Guide
The Self-Funded Search Guide
How self-funded search works, from raising capital to closing your first deal.
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The SMB Investor Show
Conversations with operators, investors and dealmakers.
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The latest from The SMB Investor
Independent research, deal data, and frameworks from Search Fund Ventures and the SMB Investor Network.
Reports
View all reports →
Report· Free with email
The VC-SMB Convergence: How Startup Valuation Conventions Are Reshaping Small Business Investing
In-depth analysis of how venture capital firms are entering the SMB market and what it means for valuations and deal structures.
Report· Free with email
The LP's Due Diligence Template: 20 Questions to Ask Any SMB Fund or Operator
A structured framework of 20 essential questions every LP should ask before investing in an SMB fund, search fund, or independent sponsor deal.
Report· Free with email
Foundational Guide to Self-Funded Search Investing
A comprehensive 24-page framework for evaluating and investing in entrepreneur-led small business acquisitions.
From the blog
View all posts →
Blog· Sep 26, 2026
What SBA Loan Charge-Off Data Shows About SMB Acquisitions
SBA loan-level data shows which acquisition loans charged off and when, but it cannot measure whether an acquisition failed or what its equity investors lost.
Blog· Sep 26, 2026
Search Fund Terms: What an LP Nets at 2x, 3x, 5x
The same exit pays an LP a different amount depending on the structure. A waterfall model at 1.5x, 2x, 3x and 5x shows where terms matter and where they don't.
Blog· Sep 15, 2026
SMB Portfolio Allocation: Where the Sleeve Fits
SMB portfolio allocation starts with purpose. Examine shared risks, cash demands and private-market exposures before deciding where an SMB sleeve belongs.
Talk to us
Selling a business, looking to co-invest or working on a deal? Tell us what you have.