Glossary · People and paperwork
Search fund / searcher(searcher)
In short
A buyer (often backed by investors) whose full-time job is finding one business to buy and run. A growing share of small-business buyers.
What it means in a deal
A search fund raises money from investors to cover a buyer's salary and operating costs during the one-to-three-year search for an acquisition target. When the target is found, the fund typically raises acquisition capital from those same investors. Traditional search funds work in a formal fund structure; self-funded searchers operate with personal capital and a tighter timeline. Both types are increasingly common in the lower middle market and compete with individual buyers for SBA-financeable businesses.
Related terms
Common questions about Search fund / searcher
- When is a lender required to conduct an environmental records search for real estate collateral?
- Can an investor fund my SBA 7(a) down payment?
- How does life insurance effectively fund a business buy-sell agreement?
- Can life insurance specifically fund a deceased partner's buyout by surviving owners?
- Can an SBA 7(a) loan fund initial inventory for a new business?
- Does the SBA 7(a) loan program fund businesses that are just starting out?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-16 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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