Economics

 

SFA is the logical partner for An entrepreneur who wants to buy and run a small business

SFA entrepreneurs receive a better economic deal than searchers who raise a traditional search fund. In addition, our entrepreneurs are backed by a fund of committed capital, raised specifically for their cohort, that allows them to buy companies without the uncertainty of disruptive fundraising delays. SFA provides 100% of the equity for each of our entrepreneurs' transactions.

SFA designed its economic model to put entrepreneurs first.

Our entrepreneurs: 

  • Earn significant profits interest (up to 25%) in their company without the burden of a preferred return
  • Receive remuneration and benefits during the search phase
  • Benefit from a full-time, paid Analyst and their own team of Interns
  • Have all office, training and travel costs covered by SFA
  • Benefit from negotiated fees from due diligence and banking partners 

The Common Fund

SFA entrepreneurs exchange a small portion of equity in their business for an equivalent  share in the businesses acquired by the other members of their cohort. The benefits to our CEOs are two-fold:

  • Creates an economic incentive for cohort members to help one another as CEOs
  • Diversifies each searcher's investment  

Learn more about why SFA's deal is superior by reaching out to the SFA team.