DEAL FUNDING

Each SFA cohort is backed by an equity fund of committed capital, and any additional equity capital required will be sourced from SFA’s investors, eliminating the need to shop a deal to dozens of investors, improving the searcher’s credibility, and giving confidence to the seller. SFA works alongside the searcher as he or she decides to acquire a business, following a collaborative process that is highly efficient and is geared to ensure the searcher’s success.

COMMON FUND

We ask each searcher to place a small portion of his or her equity in a common fund in exchange for a pro rata share of that fund, providing each searcher a small equity stake in every other deal in the cohort. The consequences of this are twofold: an economic incentive to help one another post-acquisition, and a more diversified personal investment.

Why do we do this? The concept of a “cohort” is important to us and to our searchers. The relationships they build at SFA are strong - very strong. Working in the same space for up to two years creates bonds that can last a lifetime and be leveraged once everyone is running a company.

SEARCHER CARRY

SFA economics are advantageous to the searcher. The equity percentages are identical to the traditional funded-search model, but there are a few differences in our model that benefit the searcher. Additionally, SFA’s resources and support significantly increase the chances of finding a business to buy and managing it to a successful outcome. Therefore, the projected value of that equity is greater than in the traditional model.