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According to IESE Business School’s latest research on 320 international SFs, 2023 was a landmark year for SFs. A record 59 new SFs were launched, and 31 acquisitions were made outside the US and Canada, highlighting the growing global appeal of this unique entrepreneurial model.
Key Insights from the 2024 IESE Study:
🔹Entrepreneurial talent:
71% of search fund principals hold an MBA, with searchers coming from diverse professional backgrounds, including finance, consulting, and general management. This makes search funds a compelling career path for those looking to transition into entrepreneurship, typically within two years of completing their MBA.
🔹Target industries:
Searchers are focusing their acquisition efforts in high-potential sectors such as technology, manufacturing, healthcare, and logistics, where opportunities for growth and transformation are abundant.
🔹Financial highlights:
The median acquisition size for international search funds in 2023 was impressive, with a purchase price of $11.7M, revenues of $7.8M, an EBITDA margin of 24%, and 50 employees.
This compares favorably with the US and Canadian markets, where the median acquisition had a slightly higher purchase price of $12.8M, but lower revenues and employee count.
🔹Strong returns:
While 62% of international acquisitions have taken place since 2020—making it too early to draw definitive conclusions about long-term performance—the current outlook is promising. The latest figures show an ROI of 2.0x and an IRR of 18.1%, pointing to the potential for substantial returns.
🔹Geographical activity:
Spain is the most active market in Europe with 67 SFs, Mexico leads Latin America with 50, and Australia heads the APAC region with 10.
Read the full study here:
https://apply.iese.edu/study2024/
