Traditional search versus self-funded search
A traditional search raises search capital first, then acquisition capital. A self-funded searcher may look more like an individual SBA buyer until the equity story is proven. An independent sponsor raises deal-by-deal. A management buyout is the team already inside the plant. Buyers keeps the directory honest.
Stanford’s 2026 study cited a 2024–25 median purchase near $16 million at about 6.2x EBITDA (Source: Stanford). That is a study median. It is not a job-shop law.
A searcher who will not relocate is a tour. A searcher who needs the current GM and has not priced retention is a tour. Stanford’s about 6.2x EBITDA on a 16 million median purchase is a study print. It is not a job-shop law. Self-funded searchers who use 7(a) still live under SOP 50 10 8. Traditional searchers who use committed acquisition equity should show it.
How it works still wants proof of funds before a second visit. Independent sponsors and MBOs are different vehicles. This page stays on the search vehicle. Jason Taken will not promise a Stanford multiple.
Can a searcher close a 7(a) plant?
Yes, if the file fits. SBA 7(a) still caps at $5 million with a 10% change-of-ownership injection under SOP 50 10 8 (Source: SBA). A search model that assumed a thinner check does not rewrite the SOP. BizBuySell’s 2.75x SDE median (Source: BizBuySell) is a different room again.
A searcher who will not relocate is a tour. A searcher who needs the current GM and has not priced retention is a tour. Stanford’s about 6.2x EBITDA on a 16 million median purchase is a study print, not a job-shop law. Self-funded searchers who use 7(a) still live under SOP 50 10 8, including the 10 percent injection. Traditional searchers who use committed acquisition equity should show it. Independent sponsors and MBOs are different vehicles.
How it works still wants proof of funds before a second visit. FAQ owns the questions. The search-fund owner is the process home. Jason Taken will not promise a Stanford multiple.
What a seller should test on the first call
Committed capital, personal relocation, and whether the searcher needs the current GM to stay. A tour without a debt path is a tour.
| Vehicle | Who searches | Typical capital story |
|---|---|---|
| Traditional search fund | One operator | Investors, then acquisition equity |
| Self-funded search | One operator | Often 7(a) + personal equity |
| Independent sponsor | Deal-by-deal sponsor | Raised per file |
Ask for the investor path, the debt path, and the personal relocation plan. A search without committed capital is a tour. A searcher who needs the current GM to stay has to say so before the LOI. Traditional search models that assumed a thinner equity check do not rewrite SOP 50 10 8. If they use 7(a), the 10 percent injection and the standby rules still apply. If they use conventional debt, say so.
Independent sponsors raise deal-by-deal and may already have a platform. Management buyouts are the team already inside. Individual SBA buyers can look similar to a self-funded search until the equity story is proven. Keep the labels honest. How it works still wants proof of funds before a second visit. FAQ owns the questions. The glossary hands you to the search-fund owner, then to a confidential intro call. Jason Taken is a business broker.
If the searcher cannot name the debt broker or the SBA packager on a 7(a) path, the path is not real yet. If they cannot name the lead investor on a traditional path, the path is not real yet. Tours are cheap. Exclusivity is not.
A self-funded searcher who says “we will use 7(a)” should already know SOP 50 10 8’s 10 percent injection and the standby rules for any seller note. If they do not, the path is a hope. A traditional searcher should show committed acquisition equity, not only search capital. Stanford’s study median is context. It is not your quote. The search-fund owner keeps the process. This page stays on the vehicle.
What this page will not do
It will not promise a Stanford multiple. Jason Taken is a business broker. The glossary sends you to the owner. After the noun is straight, book a confidential intro call.