Self funded vs traditional: deal size & keeping current job

Larger deals in a self-funded search are possible but challenging. Brokers for businesses with EBITDA over $3M often expect formal capital sources, and competition from LMM PE can make things tougher. You need to be able to clearly explain a complete financing plan and demonstrate that you have the access to capital and/or investors that will enable you to complete the transaction.

Balancing a full-time job adds complexity—deals move during business hours, and brokers aren’t having those conversations on nights and weekends. Staying competitive while working requires exceptional time management or flexibility in your current job.

Based on my experience, if you have the financial resources to cover the search phase costs (due diligence, travel, etc.), self-funded can be an attractive route, as it allows you to maintain full ownership and control post-acquisition. However, if you’ll need investors for the acquisition, skipping the traditional route means missing the chance to build relationships and trust with investors during the search phase, which can make raising capital more challenging later (though not impossible). If you can self-fund both the search and the acquisition, it’s often the most advantageous path financially and strategically. Balancing a 40-hour-a-week job with a search, however, is incredibly tough. The process requires significant time and effort—not just to find targets but also to build relationships with brokers, sellers, and advisors. Negotiations and due diligence demand focus and flexibility that a full-time job doesn’t usually allow. Without proper dedication, you risk missing good opportunities or, worse, making a poor acquisition decision. If your goal is to succeed in the search fund model, especially self-funded, I’d strongly recommend planning for full-time dedication to maximize your chances.