Standard Searcher / Operator Compensation?

searcher profile

July 02, 2025

by a searcher in Boston, MA, USA

I understand that salaries for self-funded searchers in the operator / manager seat vary based on a number of factors (particularly location), but have found that $150,000 seems to fairly standard these days. Is that agreed up salary generally the extent of total compensation, or does the searcher also generally reap benefits like insurance and retirement contributions in excess of that? This would be in the context of a searcher raising their equity from investors outside friends & family - think self-funded investors found on Searchfunder, etc.
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commentor profile
Reply by a searcher
from Rice University in Columbus, OH, USA
Everything is a negotiation but there are benchmarks you can use to help influence that negotiation. Check the 2024 Search Fund Study on the Stanford CES site. Page 22, exhibit 9. In addition to things like geographic location, business size, profitability, etc, this study should be your most helpful tool to benchmark against what’s “standard.”
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Reply by a searcher
in Washington, DC, USA
Honestly this depends on your individual needs. As far as investors go I've seen a cap based on 10% EBITDA. I've seen a cap based on DSCR as well. If you need $150k make sure the company you are buying can comfortably support. I myself would like to see a 1.5 ratio AFTER all debt is paid, any seller financing is paid and CEO is paid. I dunno if you'd call that conservative or prudent? This also depends on whether you have investors or are going it alone. Personally I'd want $125-150k however with the right opportunity as a single guy in a mid-high income city I'd take $80-100k over waiting###-###-#### for the right business to support my lifestyle with a $150k first time CEO salary. Pick a good business and grow into it. This of course might be different if you have kids, other obligations etc...
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