April 17, 2025

Self-Funded vs. Independent Sponsor: Sean Smith Breaks Down the Real Numbers

38 minutes

In this episode of the M&A Launchpad Podcast, hosts Feras Moussa and Casey Minshew welcome Sean Smith, Managing Partner at Search Fund Ventures and co-founder of SMB Investor Network. Sean brings a transparent, investor-first lens to the world of small business acquisitions, breaking down what dealmakers need to know to structure successful transactions.

The conversation covers everything from capital stack nuances and risk mitigation to understanding investor preferences and step-up dynamics in self-funded search and independent sponsor models. Sean also shares his entrepreneurial journey and mission to democratize private equity for accredited investors.

In this podcast episode, we discuss:

· How to structure any deal with the right capital stack

· The investor mindset: what matters most in deal evaluation

· Why the traditional search model might not be as successful as it seems

· Comparing self-funded search vs. independent sponsor deals

· How to evaluate deals using MOIC (Multiple on Invested Capital)

· Why high debt levels change investor risk profiles

· The role of quality of earnings in securing investor capital

· How to approach investors with teaser decks and checklists

· Real-world lessons from Sean’s portfolio and due diligence

· Why transitioning small businesses is a national responsibility

Connect with Sean Smith:

Email: [email protected]

Website: https://searchfundventures.co

SMB Investor Network: https://smbinvestornetwork.com

Additional Resources:

· Sponsored by O’Connell Advisory Group – Work with a trusted Quality of Earnings and Financial Diligence partner who focuses solely on business acquisitions. Visit: https://www.oconnelladvisorygroup.com

· Attend the M&A Launchpad Conference on May 3rd in Houston — a premier event for entrepreneurs, investors, and dealmakers in the lower-middle market. Tickets and details at https://www.malaunchpad.com

· Get in touch with show hosts Casey Minshew and Feras Moussa at – [email protected]

· Looking to invest in M&A opportunities or partner with an advisor to acquire, scale, or sell your business? Visit: https://www.equity-launchpad.com

About The M&A Launchpad:

The M&A Launchpad provides insights into acquiring, investing in, and selling profitable businesses in the lower to middle market. Whether you are a business owner, investor, or aspiring entrepreneur, we will provide you with the knowledge, guidance, and capital to navigate the world of mergers and acquisitions.

The M&A Launchpad presents a series of weekly podcast episodes and hosts an annual M&A Launchpad Conference tailored to the M&A community.

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