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Case Study

Entrepreneurship through acquisition: NCA's operator-led search fund approach

By Benoit F. Leleux

14 pages

August 2026

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Reference: IMD-7-2513

The case investigates the supported search fund model pioneered by Novastone Capital Advisors (NCA) through which mid-career executives can achieve their dreams of becoming entrepreneurs though the acquisition of an SME. NCA provides support through the various phases of the program, from talent selection, training, target searches, due diligence, M&A, value creation and exit engineering.

Learning Objective

Compare routes to entrepreneurship, from startups to acquisitions, and understand the characteristics and challenges of various forms of search funds/other mechanisms to effect an acquisition.
Discuss in detail the novel ‘supported search fund’ concept offered by a pioneering search fund accelerator, its pros and cons, and the types of support offered by search fund accelerators and their costs.
Review the recipe for a successful buyout or buy-in, especially in terms of incentive structure and strategic gameplan.
Review the financial parameters of successful buyout transactions, in terms of valuation, leverage and deal structure.
Assess strategies to create value post-deal, combining cost controls, new revenue streams, efficiency improvements and understand how to manage the challenges of growth − planned and unplanned.

Keywords

Entrepreneurship, Strategy, Finance, Small and Medium-sized Enterprise, Mergers and Acquisitions, Private Equity

Settings

Europe
Novastone Capital Advisors, Finance and Insurance, Private Equity
2020-2023

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

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