Forming a team for acquisition. Good idea?

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December 09, 2021

by a searcher from University of Tasmania in Tasmania, Australia

Self Funded searchers - how many of you form partnerships for your acquisitions?
Funders - Which of the 3 options listed below do you prefer?

Context - I am Self Funded looking to acquire businesses in the healthcare vertical and understand that I cannot possibly know every thing that is going on, i.e. insurance issues, regulation, technical issues... etc. etc.

Consideration:
1.Keep owner around (potential mgmt nightmare/dream?)
2.Hire advisors/ consultants to retain equity or
3.put together a team, that dilutes equity but increases chances of success?

Insight and experience is appreciated.

TIA

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Reply by a searcher
from University of Texas at Austin in Sioux Falls, SD, USA
You will need a team: legal, bank, accounting/tax. You should identify those early and hire them as needed. Also depending on your knowledge of the industry, you may need one more experts. Partnering is always risky, but can yield the best returns. Only partner if you find the right person. Otherwise better to pay for talent in cash.
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Reply by a searcher
from California State University, San Bernadino in Tustin, CA, USA
Agreeing with everyone else's comments so far. You're going to need a team because anything the employees don't solve (legal, accounting, contract negotiations, etc.) is the responsibility of ownership. The compensation scheme can be worked out with each team member.
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