Experience working for the business with a future agreement to acquire in ~3yr?

by a searcher from The University of Texas at Austin - Red McCombs School of Business

1 year ago

Hey Everyone,
First off, want to say what a great resource Searchfunder has been. Shout out to ^Searchfunder member‌ and team for building this supportive community. 
Posting today seeking some advice. My long term goal has always been to own and operate my own SMB. After hearing about the ETA model a few months ago, I felt like this was my opportunity to achieve that goal. However, at this current point in my life (moving, starting a family, career transition), I'm brought back down to earth that this may not be the right time. 
Instead, I've been thinking about an approach where I can work for/in the business for ~2-3 years with a future agreement to acquire.
Curious if anyone has structured an agreement like this in the past? If so, what was the experience like? Pros and cons of structuring a deal like this?
Any thoughts would be much appreciated! 
- James 

2 likes
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20 comments

intermediary from The University of Chicago - Booth School of Business

I have not seen a happy intersection of theory and practice of this approach. Most buyers who have thought of this have not been able get a deal done after multiple attempts b/c it is ultra complex with few precedence for advisors on either side. Hence, each side take ultra conservative position. And, those who have completed, the outcome has been disappointing. You are either an entrepreneur or not. This approach is not a risk-mitigating approach.

1 year ago | like reply | 1 like

searcher from University of Exeter

That sounds like Consulting for Equity.... that said though you come in as a Consultant not a member of Staff

1 year ago | like reply | 1 like

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