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🤓🚀 Thinking different
Acquisitions
July 1, 2024

Stanford GSB Releases 2024 Search Fund Study

Record growth, strong returns, and evolving models offer insights for small business entrepreneurs.
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Stanford Graduate School of Business (GSB) has unveiled its highly anticipated 2024 Search Fund Study, offering a deep dive into the outcomes of 681 search funds formed in the U.S. and Canada since 1984. Spearheaded by Peter Kelly and Sara Heston, this biennial study has become an essential resource for entrepreneurs and investors navigating the search fund landscape.

This year’s report highlights a record-breaking 94 core search funds launched in 2023, marking significant growth in the community. Key findings reveal an internal rate of return (IRR) of 35.1% and a return on investment (ROI) of 4.5x, showcasing the robust financial returns associated with search funds.

Notably, the study indicates a shift in acquisition trends, with a decline in the median purchase price of operating companies to $14.4 million. The demographic analysis shows a younger cohort of searchers, with 18% being female—an encouraging sign of increasing diversity in the field.

The report also explores emerging variations of the core search fund model, such as Long Term Hold (LTH), and international growth, with new funds launched in countries including China, Ireland, and South Africa.

For entrepreneurs and investors seeking detailed insights into the search fund model’s evolution and performance, the full 2024 Search Fund Study is now available.

Access The SMB Center's key insights report HERE.

Access the complete report HERE.

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