Has anyone successfully executed a Search while still employed?

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August 07, 2019

by a searcher from Harvard University - Harvard Business School in Denver, CO, USA

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Reply by an investor
from University of California, Berkeley in Moorestown, NJ 08057, USA
I tried for many years and it just didn't work for me. You need to be very available during working hours to meet with target companies, brokers, river guides, bankers, etc. If you want to transition seamlessly from working a professional job to entrepreneurship and avoid the risk of losing your pay/benefits/job security (and believe me, it is hard!), give serious consideration to franchising. That's more like interviewing for a job, as the process is highly structured, and franchisors are used to working with people who are currently employed. If you find the right franchise and don't mind the more structured work environment, you can build multiple units and even buy existing units and create yourself a platform play.
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Reply by an investor
from McGill University in San Diego, CA, USA
I’ve seen people attempt it, but I’d go in with eyes wide open. First, a real search is not a part-time effort. It’s both time consuming AND requires responsiveness from brokers, lenders, investors and sellers. Trying to do that while holding a full-time job usually means you’re doing (at least) one of those things poorly. There’s also a fairness issue. If you’re being paid by your employer, they expect your full attention. Second, the right question isn’t “has it been done,” it’s “how often does it work out well.” My guess is "not often". It's hard enough to close a deal when working at it full time (and with the help of interns). But if you are working full time, I’d be concerned about the quality of diligence done under time pressure and distraction. This is a game where mistakes are expensive and often irreversible. If you plan to do a search while you have a full time job, I'd encourage you to hire a buyside broker to help you with sourcing, due diligence and most importantly finding a target that is the right personal fit. That decision does, however, come with trade-offs. It’s expensive for one (without a guaranteed outcome), and second, you’re outsourcing one of the core skills you’ll need most as a CEO, which is sales. Most people dislike the search process because of repeated rejections, but that’s exactly the muscle you’ll need to build to operate and grow a small business. If you do decide to hire a buyside broker, find one that has a rolodex, and isn't just feeding you what's on BizBuySell. Net: doable, but hard to pull off without cutting corners somewhere along the way
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