Search Fund vs. Gradual Owner Transition

I’m weighing two ETA paths and would value input from ETA people. Path 1: traditional search fund. Raise capital, buy a larger company, likely ~$10m EV. If I earn ~30% equity, base-case personal value is ~$3m before growth. I recently had a serious potential anchor get very close to leading and then pull out late, which reinforced how much one investor can affect momentum. Path 2: staged owner transition into a smaller business, around ~$400k EBITDA / ~$2m–$3m EV, with a potential path to 100% ownership. Base-case personal value could also be ~$3m, but with more control and less investor politics. The key question: could the smaller business become a true platform for a holdco/roll-up? On the one hand, I have more flexibility and control. On the other, the business is meaningfully smaller so possibly less platform potential. For those who’ve seen both paths: when does a smaller staged transition beat a traditional funded search? What traps should I watch for? Which option has better long term potential? CONTEXT: The business has been operating since the mid-90s, does cloud storage, and the majority of their clients are on contract so high recurring revenue.