Seeking investors for a search fund focused on service based SMEs

searcher profile

April 20, 2024

by a searcher from Indian Institute of Management Ahmedabad in Seattle, WA, USA

I am looking to find investors for setting up my search fund focused on the following investment/search hypothesis.

Product or service based SMEs businesses in one of the three domains:
1) Real estate services
2) Retail & logistics services
3) Healthcare services especially around long term care
These industries are in a growth phase with low to moderate competition and largely supply constrained with an increasing demand pool of customers in the long run.

The enterprise should have Free Cash Flow between $2 to $5M range with an EBITDA margin of 30%+ that is currently seeing an at par or above industry growth. The business should be operating for 7+ years, have at least 40% recurring revenue and is family owned. The key gaps in the business would be around operational efficiency, CX, digital marketing, and creating a market dominating position.

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