As an independent sponsor, how involved are you? ($3-5M EBITDA range)

by a searcher from Concordia University

2 weeks ago

Hearing a lot of different opinions on the level of involvement for sponsors that acquire companies in the lower mid market.
Say you target companies in the $3-5M EBITDA range, what is the typical role of a sponsor? Are they working mainly ON the business, or are they tied down working IN the business?
Any personal experience you can share, or stories about your network? What are your key responsibilities as a sponsor to drive real value creation and growth in the business?

0 likes
176 views
9 comments

searcher from Columbia University - Columbia Business School

This depends on if you are CEO, but expect integration and implementation support, target finding if doing a roll-up, etc.

5 days ago | like reply | 0 likes

professional from University of Texas

The lower middle market is… work. If the sponsor doesn’t have a solid existing op system already in place already in the space, it’ll be work IN the business.

2 weeks ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Investor seeking Self-Funded Search Deals

Downsides of "buying a job" below 750k+ EBITDA?

Thought piece: Proprietary sourcing methods that delivered 2 acquisitions

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.