ETA and search funds: the model keeps delivering
Long-run studies from Stanford and IESE still show strong returns for search funds; the edge is in repeat-purchase B2B services.
The core ETA model continues to deliver: the Stanford 2024 study still shows strong long-run returns, and IESE's 2024 international update reports ~18% IRR and 2.0x MOIC, with acquisition success rates higher outside the U.S. The practical edge remains in repeat-purchase B2B services with durable cash conversion.
Next steps
- Convert theses into 100-name proprietary lists by SIC/NAICS and geography.
- Pre-wire financing (senior plus SBA, unitranche or private credit) and QoE providers.
- Use a first-meeting framework (customer concentration, renewal mechanics, price uplift levers, owner objectives) to qualify fit fast.
Informational content only. Not investment advice.