Traditional search fund model criteria would exclude any kind of manufacturing businesses due to the limited scalability and non-recurring revenue. However, there could potentially be a case for specific types of manufacturing businesses, i.e. high value, asset-light manufacturing with a strong branding element and some share of private label in-sourcing, or a roll-up strategy to gain scale.

I would be very interested to learn about any success or failure case studies in the search fund space on this topic.