The Math of Traditional vs. Self Funded

A new post from Big Deal Small Business compares the financial outcomes of traditional search fund deals versus self-funded search acquisitions. While both approaches have distinct advantages, they offer dramatically different risk and reward profiles.

In a traditional search, you'll acquire larger businesses using investor capital, keeping about 25% equity. With self-funded search, you'll buy smaller businesses using SBA loans, retaining 100% ownership but personally guaranteeing the debt.

The analysis reveals that even with 0% growth, investors earn solid returns in either model. However, a self-funded searcher can generate significant personal income (~$500K/year between salary and distributions) once debt is paid off, without requiring an exit. Traditional search offers potentially larger absolute returns in high-growth scenarios but requires selling the business to realize those gains.

Your choice ultimately depends on your goals: If you love deploying capital and growing businesses, traditional search fits better. If owning a stable cash-flowing business for decades appeals to you, self-funded search might be preferable despite the upfront risk.

The tradeoff? Control versus financial risk. Traditional searchers have limited downside but answer to a board. Self-funded searchers have complete autonomy but personally guarantee the debt—a significant consideration for those with families.

Newly Listed Deals

Wood Fabrication Business

• 📍 Location: Southeast FL

• 💰 Asking Price: $1.32M

• 💼 Cash Flow: $0.31M

• 📊 Revenue: $0.81M

• ℹ️ Source: Viking Mergers & Acquisitions

• ⌛ Listed: 2 Days Ago

Overview: ​​This well-established custom wood fabrication business in Southeast Florida has been serving high-end residential and commercial clients for over 30 years. Known for exceptional craftsmanship and attention to detail, the company specializes in custom cabinetry, millwork, and built-ins. It operates out of a fully equipped 20,000 sq. ft. facility with a skilled team in place, allowing for turnkey operations. The business generates strong and consistent revenue with a backlog of projects and long-standing relationships with builders, designers, and architects. Growth opportunities include expanding into new geographic markets, increasing marketing efforts, or introducing new product lines. This is a rare opportunity to acquire a profitable, well-run business in a niche, design-driven segment.

Upholstery Business

• 📍 Location: Miami-Dade County, FL

• 💰 Asking Price: $4.0M

• 💼 EBITDA: $1.15M

• 📊 Revenue: $2.40M

• ℹ️ Source: BusinessMart

• ⌛ Listed: 5 Days Ago

Overview: ​This thriving upholstery business in Miami-Dade Count, Florida, has quickly built a strong reputation for delivering high-quality, custom upholstery and fabric services. Located in a prime, high-traffic area, the business serves a loyal and growing customer base, including residential, commercial, and design-focused clients. With efficient operations and a commitment to craftsmanship, it has positioned itself as a go-to source for tailored upholstery solutions in the region. The business offers a turnkey opportunity for a buyer looking to step into a profitable, well-regarded operation with room for continued growth.

Medical Staffing Business

• 📍 Location: Connecticut

• 💰 Asking Price: $7.0M

• 💼 Cash Flow: $3.58M

• 📊 Revenue: $9.86M

• ℹ️ Source: Transworld Business Advisors

• ⌛ Listed: 8 Days Ago

Overview: ​​Profitable medical staffing company for sale in Connecticut, projected to generate $9.8 million in revenue and $3.5 million in net income in 2025. The business has recently secured four new contracts, with work already underway as of January 2025. This turnkey operation is fully remote-capable, offering the potential for passive ownership. With established client relationships, a reliable team of clinicians, and consistent schedules in place, the business runs on a solid infrastructure. It features a scheduling app, pay-card integration, and a streamlined onboarding process for new clinicians.

Insights from Deal Expert Andre Achtermeier

Andre Achtermeier from eightM shared his insights on deal sourcing with the EBIT Community on WhatsApp.

Andre shares his expertise on off-market deal sourcing, emphasizing quality over quantity in today's saturated acquisition environment. Drawing from his experience as founder of eightM, an M&A buy-side advisory firm, Andre reveals that personalized outreach dramatically outperforms mass email campaigns, shares the realistic conversion metrics of 10 management calls leading to 4 IOIs and ultimately 1 LOI (with only a 50% closing rate), outlines typical deal structures (70% cash, 10% seller note, 10% rollover equity, 10% earnout), identifies six common searcher mistakes including unrealistic EBITDA targets and industry knowledge gaps, and advocates for a patient, relationship-based approach that requires focus, deep target knowledge, and industry expertise to succeed in an environment where technology has inadvertently inflated seller expectations.

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