Anyone with experience in hiring a GM for an acquired business?
August 01, 2023
by a searcher from Emory University in New York, NY, USA
Hi everyone,
I’m a self funded searcher targeting a home services business likely in the $400-500k SDE range. I feel confident I can bring value to an acquired business, but would like to bring on a GM who is more experienced in the industry to manage the day-to-day operations for at least the first few years. If nothing else, having an operator partner to bounce ideas off, and provide advice based on their lived experience would be very valuable. Additionally, while I eventually plan to go full time on the acquired business, the plan is to keep my day job for the foreseeable future.
if anyone is out there that can relate and would be willing to share their experiences and advice either in a post or virtual coffee on me, I’d very much appreciate it! Would welcome tips on everything from locating a GM, developing a comp package, managing the working relationship, etc.
Thank you.
from University of Pennsylvania in Atlanta, GA, USA
If hiring a GM from outside the company, I think it will be challenging getting a GM to commit when the transaction isn't certain to close. So this plan potentially leaves you with a leadership void on Day 1.
IMO more viable to flip it around; plan to spend the first 1-2 years running and learning the business. Then you can potentially transition to a GM and will be better equipped to manage the GM.
from Harvard University in Boston, MA, USA
Home services is won and lost on accurate estimates, upselling, and efficient operations. It's tough to find someone that can do all three of those things with the budget you're describing (after your debt payments). At that size, you need to jump in the trench and grow the business to the point where you can afford a GM, plus by then, you'll know how to train that person as well.