Searchlight Investments Group (SIG) was founded with the goal of assisting ambitious entrepreneurs in their journey to acquire, own, and grow successful businesses. Recognizing the challenges and risks of pursuing such ventures independently, SIG steps in as a trusted partner to turn those entrepreneurial dreams into reality.
One of the key problems entrepreneurs face when trying to acquire a business is the risk of a failed search. Around a third of search funds wind up without ever successfully securing a business. Post-acquisition, managing a small business is laden with its own set of risks. Half of search funds that do acquire a business either lose all their initial capital or fail to generate an adequate return on investment.
Furthermore, entrepreneurs often sacrifice their ownership and control in the traditional search fund model, typically maintaining only an average of 22% equity ownership. SIG, however, provides an alternative path that retains the entrepreneur’s autonomy and a much larger share of equity.
Partnering with SIG offers several compelling advantages. Firstly, search funds with partners are statistically more successful, being 3.4 times more likely to achieve over five times the original investment.
Secondly, SIG is a seasoned ally in the business acquisition journey, offering services like M&A consultation, capital raising, due diligence, live deal reviews, and tactical support. Entrepreneurs can lean on SIG’s vast experience and expert guidance.
Lastly, entrepreneurs who team up with SIG retain full control of their acquisition and can maintain up to 80% equity ownership, affirming their status as true owners of the business.
SIG only forms Full Service partnerships with entrepreneurs who meet specific criteria, including:
- Full-time dedication to finding acquisition targets with an EBITDA between $750K – $5M.
- A focus on national or regional geographic scope within the U.S.
- An opportunistic approach towards target industries.
- Financial self-sufficiency for at least two years, except for those in the SIG Full Service Funded Program.
- Commitment to relocate and work full-time at the acquisition target location for at least one year.
SIG is particularly interested in mature, high-quality businesses with unique competitive advantages and resistant to market fluctuations. These businesses should have an EBITDA between $750K – $5M, demonstrate consistent historical performance, strong margins, components of recurring revenue, and moderate to high growth potential.
Ideal founders or owner-operators are those looking to transition out of the business over time and seeking a buyer who would carry the business forward, maintain its legacy, and take care of its employees. SIG’s industry focus includes, but is not limited to, Industrial Services, Business Services, Tech-Enabled Services, Professional Services, Healthcare Services, Niche or Asset-Light Manufacturing, and Engineering Services.
