Do SFA Entrepreneurs Compete with Each Other for Deals?
No. While there is a healthy amount of competitiveness around developing new search techniques at SFA, our entrepreneurs do not compete for acquisition opportunities. They collaborate. They help each other succeed. On the rare occasion when two of them are in contact with the same company owner, they work it out. Much more often, they will pass a deal to another searcher who is more interested in the space. This healthy dynamic has already led to two successful acquisitions at SFA!
How Does SFA’s Investment Committee Work?
What Investment Committee? There is no investment committee at SFA. Investment decisions are made continuously by each entrepreneur along with the SFA team. Throughout due diligence, every additional piece of analysis leads to new questions that contribute to our mutual assessment of the company. Our investment process is straightforward: we will close as long as the deal keeps moving forward and the key issues are addressed.
This constant, objective reevaluation allows our entrepreneurs to overcome the confirmation bias, the lack of experience conducting due diligence and the anxiety that have historically led searchers to make bad investment decisions. We work with our searchers to maintain a strong deal pipelines right up until close to give them the confidence to make clear-headed decisions and walk away from subpar businesses.
Who Decides When to Sell a Business?
The CEO will make that decision in conjunction with the board of directors. Neither SFA nor its investors are looking to sell businesses in five years or less like typical private equity funds. In fact, we prefer that the CEO continue to run a growing, prospering business, and that we all enjoy the result of long-term compounding of value.
When Does the Next SFA Cohort Start?
August 2019. The next cohort of entrepreneurs will join Search Fund Accelerator in early August 2019 for Boot Camp at our Boston office. Applications will open in October 2018. We will be visiting campuses starting in September to speak with potential candidates.
Do SFA Entrepreneurs Have a Geographic Focus?
Yes - the United States. SFA entrepreneurs conduct nationwide searches across the United States. SFA does not support geographic-specific searches.
Does SFA Work with International Searchers?
SFA only works with entrepreneurs who have permanent authorization to work in the United States, and who wish to acquire and run a business in the US.
Does SFA Work with Partnered Searchers?
We work with entrepreneurs who are committed to be CEOs and feel ready to take on the responsibilities of that role. They neither want nor need to split the economic rewards of a successful search with another searcher. One SFA investor said, “SFA is the ultimate partner.” Why? Because our searchers get far more support from SFA than any one partner could provide, without giving up half of their equity.