Last week, we covered the brutal odds against searchers. Roughly one-third of individuals never buy a business, and of those who do, about a third lose money. So why would anyone willingly sign up for this grind?

Because when it works, it works spectacularly.

Letʼs look at the numbers. Stanfordʼs 2024 study reports that U.S. search funds with positive exits generated a median 5.2x MOIC (multiple on invested capital) and an Gross-IRR of 35%+. Overall, international search fund returns lag behind the US, but this is mainly due to the limited track record with most transactions having been completed less than 5 years ago. Internationally the top performing search fund returned 31.4x and in the US, Road Rescue, which later became Asurion delivered an astonishing 5275× (not a typo) return. Even factoring in the failures, the pooled asset class has outperformed traditional private equity and venture capital.

And the upside isnʼt just financial. Searchers become CEOs often in their early 30s, running businesses with 30-300 employees and revenues of €5M-€50M. Thatʼs a decade-plus head start compared to waiting for a corporate ladder or partner track. For investors, the model offers access to a unique risk-reward opportunity: small, overlooked companies where professionalization, consolidation and multiple arbitrage can unlock significant value.

Geography also cuts both ways. While Europe lags the U.S. in ecosystem maturity, that scarcity is itself an opportunity. Sellers are less familiar, Search Fund acquisition rates are higher, and buyer competition is thinner. 

The psychological grind remains real. But those who endure screening hundreds of companies, build seller trust, and convince lenders, develop operator resilience that no MBA class can teach.

Yes, half of all searches fail. But the half that succeed can change not just careers, but lives. For investors, the winners deliver multiples that surpass private equity and venture capital. For searchers, the prize is more than returns: the chance to step into the CEO seat years, even decades, ahead of schedule.

Search funds are stepping into Europeʼs succession gap - With thousands of SMEs facing founder retirements across the DACH region, family offices are backing searchers as heirs of choice. Unlike private equity, the model appeals to owners seeking continuity: buyers are younger operators committed to preserving jobs and culture while professionalizing the business. As a result, ETA is fast becoming a credible solution to Europeʼs looming ownership transition crisis.

The Other Side of ETA - Scott Duncan’s bankruptcy case is a reminder that one-third of searchers never acquire, and another third lose equity. Beyond the success stories, ETA remains a high-risk path where resilience matters as much as capital.

Completed Fundraise:

Swiss/French-focused Logos Equity Partners, founded by Albert Marquez Andreu (7 years of operational and leadership experience in healthcare and industrial sectors) and Pablo Ferrero (6 years of experience in business development and sales), has successfully completed its fundraise. The fund will focus on acquiring succession- driven SMEs in French-speaking Switzerland and France (with a particular interest in sectors such as healthcare, industrials, software, electronics, HVAC, and energy efficiency)

An ex-investment banker leaves the golden cage for ETA and launches Ambro Capital to buy and run one great SME in Switzerland or southern Germany. He explains why the market is ripe with many small firms and limited competition, how personalized letters open doors with owners, and which niches he targets. He uses his own capital, two paid interns, and operator-heavy backers. He insists on majority control and waits for mission fit before pulling the trigger.

Two ex-consultants swap corporate tracks at Zalando for entrepreneurship by acquisition, raising €500k from a mix of German and international backers to acquire a company. They unpack the model’s promise for Mittelstand succession gaps, why investors back résumés over ideas, and how Spain outpaces Germany threefold in deals.

👉 Was this email forwarded to you? Subscribe here to get ETA Europe delivered to your inbox every Thursday 👈