For self-funded searchers; would you take CEO position + sweat equity?

by a searcher

4 years ago

I am operating a self-funded opportunistic search in Toronto, Ontario. I have come across a few opportunities whereby, instead of running an acquisition of the company, I would be placed as CEO and earn sweat equity in the company (combination of upfront plus vested, requiring a liquidity event down the road). Have other searchers explored these types of opportunities? What are your thoughts?

9 likes
327 views
16 comments

searcher from Harvard University - Harvard Business School

Dan - Reach out to me a --@----.com I would love to discuss and swap stories. I have had several instances where that was the case, and my mentality has now shifted.

4 years ago | like reply | 0 likes

searcher

Effectively this is the same as a traditional search, but you're using vendor equity in lieu of investor equity/capital. The details of this arrangement are what would make or break the arrangement, as you could be left in a position where your expectations are not met, and you're left without much leverage or protection in the situation. Are these primarily Canadian or non-Canadian companies? If these are Canadian businesses, feel free to reach out to me as I have experience in these kind of arrangements and would be willing to provide you some of my insight as to what I've learned in these kind of arrangements.

4 years ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.