Seeking Advice on Managerial Transition with Ownership Incentives

Hello, Search Funder Community,

I am approaching a transition phase for one of my small businesses, as our current manager will be retiring in the next 6-12 months. I'm considering hiring a replacement who would be interested in a compensation structure that includes building up a significant ownership stake over time, potentially acquiring 100% ownership in the future.

I am not very familiar with the search fund model, as my past ventures have been primarily funded through the SBA or with cash on hand. However, I believe this forum could provide valuable insights. Has anyone here implemented a similar compensation structure in a small business? I would appreciate any experiences or advice you can share on this matter.

Thank you in advance for your help.