Team composition has historically driven target size. As the model matures and institutional investors arrive, the acquisition spectrum is widening — and with it the complexity searchers have to handle.
A question we are asked frequently by both investors and searchers is whether target sizes are genuinely drifting upwards, or whether this is an impression created by a handful of visible transactions. Our reading of the evidence:
- Team composition matters. Historically it has influenced target size, and recent studies suggest a trend favouring partnered searchers over solo ones for larger deals.
- Institutional capital widens the range. As the model matures and institutional investors enter, the acquisition spectrum widens and larger deals come into consideration.
- Structures are getting more complex. More intricate deal structures and evolving debt dynamics are what actually enable searchers to reach larger acquisitions — the constraint was never ambition.
- The skill requirement rises with size. Entrepreneurs must adapt, mastering the intricacies of larger transactions while sustaining focus on operational excellence after closing.
The last point is the one we weigh most heavily in our own assessment. A larger target changes the financing structure, the diligence burden, the lender relationships and the management layer a searcher inherits. None of that is a reason to avoid larger deals, but it does change what we look for in the person doing them.