Search funders experience with remote or limited on-site presence?

May 05, 2024

by a searcher from IESE Business School in Cluj-Napoca, Romania

Hello,

Thinking of raising a search fund, only limitation so far is ability to move where the company is (family and personal reasons). Expanding the range beyond a 1hr commute would significantly increase my funnel. I'm already used to travelling frequently within Europe.

Does anyone have experience with managing the company after acquisition with limited on-site presence (e.g. 2-3 day per week or even 5 day/2 weeks) or remotely? If you have I'm curious to know...

How did you manage the first 100 days?
Are investors open to this? Or do they perceive it as lack of commitment? Did you face extra challenges in raising the search capital?

More than happy to have a 1-on-1 if someone is open to share more advice.

Reply by a searcher
from Northwestern University in Chicago, IL, USA

Would advise against a configuration where you are remote from day-1. It can be done in theory, but it might lead to challenges in building trust with employees, more risk around transitioning the business from the seller(s), and potentially tougher to get fully up to speed on the nuances of your business. Having said that, it is possible to go somewhat remote after some period of time (depending on the business / industry) but only after you have spent ~1yr in-person post-acquisition.

Reply by a searcher
from Henley Business School in Hook RG27, UK

Having acquired a business that is roughly an hour commute each way, I travel in 5 days a week. In that first year, I believe the time spent among the employees is the time to learn as much about the business and uncover opportunities to grow. If you are not there, you are going to miss lots of low hanging fruit. That said, I am now transitioning down to three days a week and the culture I have built now enables this to happen smoothly. Just food for thought.

+4 more replies.

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