SyndiVox

Chicago Booth Search Fund | Acquiring & Operating Home Services Businesses

Executive Summary

SyndiVox is a search fund founded by two Chicago Booth MBA graduates—Slava Davidenko and Mikhail Pritsker—with 40+ years combined entrepreneurial experience. We are seeking to acquire and operate a subscription-based home services platform in the US Sun Belt with $5M EBITDA and 70%+ recurring revenue.

Our investment strategy leverages three macro tailwinds: the $10T+ "Silver Tsunami" of boomer business transitions, 80% of US population growth concentrated in Sun Belt states, and active PE consolidation validating exit multiples (e.g., Sila Services $1.7B exit in 2024).

The Team

Slava Davidenko - Co-Founder & Partner

  • Chicago Booth MBA
  • Former VP at SunBelt Sky Real Estate
  • 15+ years in real estate investment and operations
  • Deep Sun Belt market expertise (Texas, Florida, Arizona)

Mikhail Pritsker - Co-Founder & Partner

  • Chicago Booth MBA
  • Former technology executive
  • 25+ years in technology and business operations
  • Focus on operational excellence and process optimization

Why Partnered? Stanford GSB 2024 data shows partnered searches achieve 40.5% IRR vs 30.3% for solo searchers—a 34% performance premium.

Investment Thesis

Three Converging Tailwinds

  1. Silver Tsunami ($10T+): 73% of business owners over 55 have no succession plan. 10,000 boomers retire daily.
  2. Sun Belt Growth (80%): 80% of US population growth is in Sun Belt states. Texas +562K, Florida +444K, Arizona +94K net migration annually.
  3. PE Tailwinds ($1.7B): Sila Services exit in 2024 validates home services roll-up thesis. Active PE consolidation drives 8-12x exit multiples.

Target Acquisition Criteria

  • Platform EBITDA: $5M
  • Entry Multiple: 3-5x EBITDA
  • Recurring Revenue: 70%+ required
  • Geography: Sun Belt (TX, FL, AZ, NC, SC, GA)
  • Hold Period: 5 years
  • Exit Multiple Target: 8-9x EBITDA

Target Industries

We focus on subscription-based home services with high recurring revenue:

  • HVAC Services: $156B TAM, 6.6% CAGR, 55%+ recurring revenue, 117K+ operators
  • Pest Control: $28.5B TAM, 6.3% CAGR, 75-80% recurring revenue
  • Commercial Landscaping: $188B TAM, 7.1% CAGR, 65%+ recurring revenue
  • Property Management: $134B TAM, 4.5% CAGR, 95-100% recurring revenue

Combined TAM: $506B+ | Average CAGR: 6.1% | Multiple Arbitrage: 3-5x → 8-9x

Search Fund Asset Class Performance

Based on Stanford GSB 2024 Search Fund Study:

  • 35.1% Asset Class IRR (across all completed searches)
  • 40.5% Partnered Search IRR (+34% vs solo at 30.3%)
  • 63% Acquisition Success Rate
  • 69.5% Positive Returns Rate

Fund Structure

Two-Stage Investment

Stage 1: Search Capital (Currently Raising)

  • Amount: $700,000
  • 18-24 month search period
  • Pro-rata acquisition rights
  • 1.5x step-up at acquisition close ($1,050,000 credit)

Stage 2: Acquisition Equity (Upcoming)

  • Amount: $15,000,000
  • Upon target identification
  • Search investors have pro-rata priority
  • 5-year operating period

Total Raise Target: $16.05M (including 1.5x step-up)

Partner Equity Structure (IRR-Based)

  • Base (25% IRR): 30% partner equity (15% per partner)
  • Target (30% IRR): 33% partner equity (16.5% per partner)
  • Stretch (35%+ IRR): 35% partner equity (17.5% per partner)

Return Scenarios

Example: $100K investment over 5-year hold period

Base Case (25% IRR)

  • Entry: $5M EBITDA @ 3-5x = $15-25M Enterprise Value
  • Exit: $9M EBITDA @ 8x = $72M Enterprise Value
  • Returns: 3.05x MOIC
  • $100K → $305K

Target Case (30% IRR)

  • Entry: $5M EBITDA @ 3-5x = $15-25M Enterprise Value
  • Exit: $10M EBITDA @ 9x = $90M Enterprise Value
  • Returns: 3.71x MOIC
  • $100K → $371K

Stretch Case (35% IRR)

  • Entry: $5M EBITDA @ 3-5x = $15-25M Enterprise Value
  • Exit: $11M EBITDA @ 9x = $99M Enterprise Value
  • Returns: 4.44x MOIC
  • $100K → $444K

Value Creation Playbook

  1. Year 1 - Foundation: Assess operations, implement KPI dashboards, optimize pricing, upgrade technology
  2. Years 2-3 - Growth: Expand recurring contracts, digital marketing scale-up, 1-2 tuck-in acquisitions
  3. Years 3-4 - Platform: Build shared services, geographic expansion, cross-sell services
  4. Year 5 - Exit: Professionalize for sale, engage sell-side advisor, run competitive process

Value Creation Levers: Organic growth (4-7% CAGR), margin expansion, tuck-in acquisitions (2-3 add-ons), multiple expansion (4x → 8-10x). Target MOIC range: 3.05-4.44x

PE Consolidation & Exit Path

Active PE buyers validate our thesis and provide exit optionality:

  • Sila Services: $1.7B exit (2024) - HVAC/Plumbing
  • Apex Service Partners: 40+ locations - HVAC
  • Wrench Group: 25+ brands - Home Services
  • Crete United: 85+ locations - HVAC/Electrical

77+ HVAC deals in 2023, $682M invested. Platform multiples: 8-12x EBITDA.

Sun Belt Market Opportunity

80% of US population growth concentrated in Sun Belt states (US Census 2023):

  • Texas: +562,000 population gain, 1.89% growth rate. Key markets: Austin, Dallas, Houston, San Antonio
  • Florida: +444,000 population gain, 2.04% growth rate. Key markets: Tampa, Miami, Orlando, Jacksonville
  • Arizona: +94,000 population gain, 1.28% growth rate. Key markets: Phoenix, Scottsdale, Tucson

Additional target states: North Carolina (+100K), South Carolina (+90K), Georgia (+85K), Tennessee (+80K)

Deal Economics

Target Acquisition Profile

  • Target EBITDA: $5M
  • Entry Multiple: 4x EBITDA
  • Enterprise Value: $20M
  • SBA 7(a) Debt: $5M
  • Equity Required: $15M

Capital Stack ($20M EV)

  • Equity (Investors): $15M (75%)
  • SBA 7(a) Loan: $5M (25%)

Investor Benefits

  • Monthly search progress reports
  • Quarterly investor calls
  • Full deal pipeline transparency
  • Due diligence access for qualified opportunities
  • Direct access to both partners
  • Pro-rata rights on acquisition equity
  • 1.5x step-up on search capital at closing

Sources & References

  • Stanford GSB 2024 Search Fund Study: Asset class IRR (35.1%), partnered vs solo performance, acquisition success rates
  • Mordor Intelligence: HVAC Services market sizing ($28.2B → $38.8B, 6.6% CAGR)
  • Grand View Research: Commercial Landscaping market analysis ($70B → $89B, 7.1% CAGR)
  • IBISWorld: Pest Control industry data ($28.5B → $34.3B, 6.3% CAGR)
  • US Census Bureau 2023: Sun Belt population growth, state migration data
  • SBA.gov 2023: SBA 7(a) loan statistics (103K financings, $56B total)
  • Industry M&A Analysis 2024: HVAC investment activity, platform exits

Contact

Email: partners@syndivox.com

Website: https://syndivox.com

Partners: Slava Davidenko & Mikhail Pritsker