Search Funds as an acquisition entrepreneurship strategy: a review of best practices, historical evolution, and challenges in the north american market

Abstract

Search Funds represent a unique model of entrepreneurship through acquisition, originally developed in the North American academic context, and have gained prominence as a strategic alternative for professionals aiming to lead established small and medium-sized enterprises. This study aims to critically review the literature on the topic, addressing the historical evolution, structural components, operator profiles, main challenges, and best practices for success. Research included studies from institutions such as Stanford, Harvard, and IESE, along with peer-reviewed articles and technical reports. The findings indicate that the model offers high financial returns and effectively aligns the interests of entrepreneurs and investors, although it faces significant obstacles, particularly when applied in international contexts. This review contributes to both the theoretical and practical understanding of the model and highlights future research opportunities in emerging markets.