Seeking perspectives on the viability of pre-MBA searchers
May 06, 2020
by a searcher from Pennsylvania State University in New York, NY, USA
Hi all, I come from a pre-MBA consulting background (3 years of experience primarily focused on commercial due diligence for private equity firms).
I am exploring search funds and I'm curious to hear your perspectives on searching without an MBA / with only 4-5 years of total work experience.
What is the investor perspective on my ability to fundraise? What is the searcher perspective on my ability to be successful?
from University of Pennsylvania in Park City, UT, USA
From my perspective he got some amazing, unique operating experience very few people get at that age. He found an opportunity where a business had a compelling offering but was poorly managed. Since earnings were $0 and the owner's alternative was to shut down the business, he negotiated a 50% equity stake for $0...he came on as CEO but the founder stuck around and worked also. He ended up working his butt off for 2-3 years, got incredible operating experience, and sold his share before Wharton and netted something like $500K before taking a break at b school. It was great since he walked into an established business, put NO money down and didn't have to deal with any external investors with preferred shares, etc.
Not sure what he's doing now - but definitely impressive IMO.
in Boston, MA, USA
You may be able to successfully raise depending on your profile and network, but I'd have serious questions about somebody with only 3-4 years' work experience being able to convince a seller that they're the right person to take over a business - notwithstanding their ability to actually do it. It already seems tough enough for searchers in their late 20s to mid 30s (with 2-3x as much work experience as you have), plus the additional "stamp" of an advanced degree.
It's rarely anything new, especially to management consultants, to work with clients who have more years of work experience than you have years alive. But it could be especially difficult in a small business scenario.