15 minutes with… is a Moonbase Capital series that picks searchers’ brains on current market conditions, what challenges they are facing and the actual technicalities of what it takes to be a Searcher.

In a candid conversation, Sophia Secourgeon, an aerospace engineer turned Search Fund entrepreneur shares her journey from engineering to entrepreneurship. With a decade of experience in aerospace and defense, she pursued an MBA at IESE Business School in Barcelona to pivot towards entrepreneurship, discovering Search Funds as the perfect vehicle to channel her passion for business and innovation.

Despite facing the challenges of a male-dominated industry, her focus remains steady: “I believe in my abilities and the importance of self-awareness.”

She is motivated by the potential to impact critical sectors like healthcare, tech, energy, and manufacturing, aiming to lead a company that adapts to societal changes. Actively seeking investment, she currently explores the favorable French market, backed by supportive policies and a community of like-minded searchers.

MC: How did you transition from aerospace engineering to search funds?

S: After nearly a decade in the aerospace and defense industry, I pursued an MBA at IESE Business School with the goal of entering the entrepreneurial space. It was there I learned about search funds, which resonated with me due to my close ties to entrepreneurship through family and friends.

MC: Did you face challenges entering a male-dominated industry?

S: Having worked in similar environments, I was aware of the potential challenges. However, I believe in my abilities and the importance of self-awareness. I focus on my goals and what I want to achieve, despite the initial lack of credibility that might come from being a woman in this field.

MC: What motivates you to explore sectors like healthcare, tech, energy, and manufacturing?

S: These sectors are interconnected and crucial for the future. Technology is pivotal across industries, energy management is essential, and healthcare is vital, especially considering potential pandemics. I believe in running a company that adapts to our evolving society.

MC: Are you considering opportunities in aviation and defense, given your background?

S: Yes, I’m exploring opportunities in aviation, aerospace, and defense, aligning with my experience in these fields. However, it can be difficult to find a compliant target in this sector as this market is concentrated. It could be interesting to find a company that is a Tier 4 or 5 supplier whose customers come from the aeronautics sector but also from other sectors (healthcare, automotive, tech).

MC: How is your search progressing, and have you secured investment?

S:I have started searching since last September, and it is going well : I have the support of investors to advise me in the first LOI negotiations. Moreover, I hired interns helping me to keep prospecting, and to elaborate accurate financial analysis within the Search Fund economics model.

Initially, I engaged with Moonbase Capital, but they are not currently involved in my Search Fund. However, I am actively pursuing other avenues for investment in case of a potential acquisition, and I remain open to opportunities to work with great investors like Moonbase in the future.

MC: Do you see any saturation in the Search Fund market in France?

S: With President Macron’s push towards re-industrialization and various programs, I see a good opportunity for French searchers. The acquisition environment is becoming more favorable, especially with decreasing valuations and post-pandemic trends. The community among French searchers is helpful, and with about 15 active searchers annually, the market is still manageable.

MC: Are macroeconomic trends or policy changes in France impacting the Search Fund sector?

S: Post-COVID, we saw a wave of companies coming to market. However, certain sectors are stabilizing, and we expect more stability and potentially lower valuations in 2024. Rising energy costs and material costs in some sectors will bring changes to the industry. To conclude, digital and energetic transitions are inevitable. More and more owners don’t have the energy to launch such strategies and it will be the role of new CEOs to implement them.

MC: What criteria do you look for in a company?

S: First of all, understanding the local culture, laws, and mindset is crucial for running a company, which is why I focus on France and potentially French-speaking areas close to the border.

It must align with my values on a personal level. I focus on businesses where I feel I’m contributing positively to society, helping people, and supporting my employees. Operational mindset and culture are important, and I avoid sectors that don’t align with these principles.

MC: Have you faced any biases due to being a woman in this field?

S: While some owners may be biased, it hasn’t been a significant issue. As a buyer with secured capital, I haven’t felt a hard stop because I’m a woman. Fundraising was emotional but a good preparation for the search, which is also emotional.

MC: How do you view the search fund landscape in Europe compared to the USA?

S: Search Funds are relatively new in Europe, with France’s market being younger than Spain’s. And the French Search Fund market is not as structured as in the USA. There’s lots of pedagogy and explanation towards local investors and potential sellers to convince them about the reliability of this model.

MC: How was it to raise a fund, especially as a first-time experience?

S: Raising a fund was an emotional journey. It’s good preparation for what’s to come, which is equally emotional. I started my fundraising journey in November 2022, amidst the onset of inflation when money was tight. The competition was fierce, with many European searches competing for funds. It took me nine months to close my fundraising in mid-July 2023, shortly after graduating from my MBA program in May 2023. The process was lengthy and challenging, but ultimately rewarding.

MC: Did you have any mentors who played a crucial role during this process?

S: Yes, I feel incredibly lucky to have had the support of mentors. In my search fund, I have about 20 investors, half of whom are French or French speakers. Among them, two to three investors are particularly close to my search, with one acting almost like a search partner. Their guidance was invaluable, especially considering the hard work and emotional toll the process takes.

MC: Is there something you wish more people understood about search funds or something you wish you knew before starting?

S: The environment is predominantly male, which was intimidating at first, leading to imposter syndrome. However, I learned that you don’t have to work non-stop like a machine. It’s important to manage your time effectively, considering personal and family life. The process allows for two years to search and acquire a company, so there’s no need to add unnecessary pressure. Anyone with a solid background, experience, discipline and ambition can succeed in this field.

MC: Would you consider venturing into startups?

S: While the current buzz around AI is exciting, I don’t feel I have the right idea to launch a startup at the moment. It’s a fascinating area, but not one I’m looking to explore immediately.

MC: Are there any resources you’d recommend to others interested in Search Funds?

S: Jan Simmons’ book, “Search Fund and Entrepreneurial Acquisitions,” has been a fantastic guide. It offers a roadmap for buying a business and leading it to the next level. Whenever I’m stuck at any stage, I refer to the relevant chapter for guidance. Additionally, the Harvard Business Review “How to Buy a Small Business” and podcasts like “Search Fund: The EtA Podcast” offer valuable insights. When focusing on the French market, I recommend the following French episodes:

• Le Search Fund, un nouveau modèle d’acquisition from une cession presque parfaite
• Le Search Fund selon Thomas Dreyfus from Alvo Talk

These are excellent resources for anyone looking to understand the intricacies of search funds and acquisitions.