redactedDoes the math, math? We pulled the last 10 self-funded deals and the last 10 independent sponsor deals that came across our desk at PROX Search Capital. We didn’t cherry-pick; we just used the most recent opportunities we reviewed. The results? At nearly 3x the size, Independent Sponsor deals were under contract with the same effective multiple. Why? Primarily, the financing structure changes the valuation conversation. Often with self-funded deals, searchers focus on whether a deal works at a given price rather than whether the business is actually worth that price. In short: "Does it cash flow?" With higher leverage and long amortization, searchers focus on cash flow, regardless of whether a comparable business has better or worse fundamentals. Focusing on spreadsheet math can lead a searcher to acquire a business that isn’t prepared to navigate the post-acquisition transition. On the other hand, sponsors don't have that option. Larger deals force a different conversation. With significantly more equity at risk, lower leverage, and tougher conventional debt terms, sponsors and investors are focused on what the business is actually worth and whether the purchase price can generate an appropriate return. In short: "Is this a business capable of being a platform for growth?" Ultimately, when evaluating a business of any size, the methodology shouldn't be what "works" on a spreadsheet, but whether the company is worth what you're paying for. Fundability and quality don't always go hand in hand. And that worth is best defined by what the company is and can be under your ownership.