Headhunter for Bolt-On Acquisition’s Operator

investor profile

August 27, 2023

by an investor from University of Puget Sound in Seattle, WA, USA

Does anyone have experience using a headhunting/recruiting firm for a bolt on acquisition’? I’ve done two acquisitions (platform 6 years ago then a bolt-on 2 years ago) and have been able to act as CEO in both as they were in the Seattle area. This (~15 employees) is in LA with industry overlap, but I personally wouldn’t be able to relocate.

We currently have ~20 employees and I’ve trained an operations manager with tremendous talent that’s grown with us over the past 3 years as we’ve built systems/processes who may be willing to move, but he’s in his early 20s and there are quite a few folk at the target co who have been at the business for 20+ years so more experience may help to smooth attrition in the post-transition short term. Any executive recruiting experience would help!

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Reply by a searcher
from University of Western Ontario in Toronto, ON, Canada
I am going through a very similar situation, ^redacted‌, with my lab equipment distribution company. We have already completed one bolt-on, but due to the proximity to our original/platform company, I am currently managing both. Now, we are on the path of acquiring another competitor in Montreal, QC and I would need an operator based there to smooth the transition and execute on operational targets. Please let me know if you have found any good resources/firms/etc. Of course, my target is very far away from LA, so it may not be applicable.
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Reply by a searcher
from Western Michigan University in Grand Rapids, MI, USA
Hiring an operator you don't have much experience with is always a risk. Not only do you have the typical questions of "Is he/she the right person for the job?" and "Will he/she be a good fit with our culture?" but you have the added risk of needing them to be able to integrate the acquisition in with your platform.

My first choice would be to hire someone already on your team who can relocate. The second choice would be an internal candidate already working for the acquisition target. Then I would weigh my confidence in a new hire vs. is this deal really worth taking on that kind of risk.
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