Has anyone completed a search where they come on as an employee first?

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August 03, 2023

by a searcher from Texas Christian University - Neeley School of Business in Fort Worth, TX, USA

This question is likely more oriented towards self funded searchers but I’d love to hear the insight of the global community.

I have recently considered the idea of conducting search-related outreach with the position of coming into the business as an employee/operating partner (think COO) with the expressed intent of acquiring the business###-###-#### months later should things make sense for both parties.

I could see the benefits in this approach: allows you to better understand the business, longer insight into financials, allows owner to transition out over time, etc. I can also see the cons, most importantly if things don’t work out is it wasted time.

I would love to hear the community perspective. If you have done this, what was your approach? Can you share your outreach materials if any?


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Reply by a searcher
from Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM) in Monterrey, Nuevo Leon, Mexico
That's quite an interesting idea, would you be willing to share your findings?

Also, in this alternative, how would you structure the transaction? I'm guessing the owner would be willing to carry a relatively large seller note, but I'm thinking equity could be challenging (not sure if the same investor universe applies)
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Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
Lots of my clients did it.
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