FAQ
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, they work it out. Much more often, they will pass a deal to another searcher who is more interested in the space.
What if SFA Doesn’t Agree to Do My Deal?
Investment decisions are made continuously and collaboratively by each searcher in conjunction with the SFA team. We have deep experience evaluating acquisitions of outstanding small businesses and invest significant time and energy training each one of our searchers to think like an investor.
How Does SFA’s Investment Committee Work?
There really is no investment committee at SFA! The investment process is a continuous collaboration between each searcher and 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.
Who Decides When to Sell a Business?
The CEO and company’s board of directors make that decision together. Neither SFA nor its investors want to “flip” businesses like private equity funds. In fact, we vastly prefer that a CEO continue to run a growing, prospering business, so that we all enjoy long-term, compounding returns.
Do SFA Entrepreneurs Have a Geographic Focus?
Yes - the United States. SFA’s searchers conduct nationwide searches across the United States. SFA does not support geography-specific or international 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. We cannot invest in businesses outside 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 leading a company. Our searchers neither want nor need to split the economic rewards of a successful search with a partner. 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 40% of their equity.*
* Single traditional searchers earn up to 25% equity, whereas partners split 30%. That’s 15% vs. 25%, or a 40% discount, just to take on a partner!
When Does the Next SFA Cohort Start?
The next cohort of searchers will join Search Fund Accelerator in August at either the New Orleans or Denver office. SFA is actively seeking entrepreneurs for next year’s cohort.