Investment Thesis
Disciplined diligence, proprietary sourcing, anchor capital, and a targeted value creation engine — built to deliver attractive risk-adjusted returns in small business acquisitions.
Market Opportunity
$7.4 trillion in small business assets are held by owners approaching retirement, creating a sizeable supply of attractive businesses for sale. Self-funded search has consistently delivered investors an estimated ~30% IRR, and the SBA 7(a) program enables up to 90% loan-to-value — making this one of the most compelling risk-adjusted opportunities in private markets.
$7.4T Succession Wave
51% of small business owners are 55 or older. The supply of quality businesses far outpaces buyer readiness — and these targets fall below the radar of institutional PE.
Favorable Deal Economics
Purchase multiples of 3x–5x (vs. 10x+ in traditional PE), government-backed leverage up to 90% LTV, and buyer negotiating leverage from active management requirements.
Technology Transformation
Most small businesses run on spreadsheets and manual processes. Structured tech-enablement drives 67–230% higher trading multiples for transformed companies.
Portfolio Performance vs. Market
Based on proprietary data from 250+ small business acquisitions reviewed. Sources: Stanford GSB, SIG Partners
Three Investment Themes
We follow a disciplined evaluation process in pursuit of these themes across every investment opportunity.
Staying Power
We identify companies with sustainable earnings power that can endure challenging environments. By focusing on businesses that have survived multiple economic cycles, generate high-quality revenue, and provide essential products and services, we inherently mitigate risks related to demand shocks and obsolescence.
Incentive Alignment
Stakeholders have aligned economic incentives and the operator is well-positioned to execute strategic priorities. We pay close attention to governance structures to ensure all parties are aligned with investors and can be held accountable.
Asymmetric Bet
A credible path to an outsized return combined with a healthy margin of safety over a downside scenario. Our proprietary modeling centers on identifying opportunities with a credible path to 30%+ IRR, while generating a return marginally better than the S&P 500 in a realistic downside case.
Investment Criteria
We partner with the best entrepreneurs and the best businesses across a diversified portfolio of small business acquisitions.
The Company
Essential Products & Services
Companies providing essential products and services with low EBITDA volatility, selling into attractive end-markets.
$500K–$3MM EBITDA
Profitable businesses with sustainable growth and margins, too small for institutional PE but large enough to support professional management.
10+ Years Operating History
Demonstrated resilience through economic cycles. Businesses that have endured prove they can continue to endure.
HQ in North America
Headquartered in North America with well-aligned management and clear paths to sustainable growth.
The Acquisition
Purchase Multiple Below 5x
We seek acquisition terms that provide a margin of safety. Our portfolio averages 3.9x — 15% below the market average of 4.6x.
40–70% Leverage
Prudent capital structures that balance leverage with investor protections and operational stability.
Aligned Incentives
Economics aligned between buyer and investors, with shareholder rights, robust protections, and terms that create an asymmetric risk-return profile.
Technology Opportunity
Clear potential for tech-enablement and inorganic growth — areas where SFV can directly support execution.
Operator-Led. Partner-Driven.
You retain control — we bring structure, specialists, and execution support. Our goal is to make outcomes more predictable by mitigating key risks and driving sustainable growth.