We've been hearing from searchers and operators about a troubling trend: many don’t have an employment agreement in place when they close their acquisition. Is this as widespread as it seems?

Here’s why this matters: Without an employment agreement, searcher CEOs are left vulnerable. It becomes nearly impossible to address issues like wrongful termination, clarify severance, or formalize expectations. We've spoken to multiple searchers who were terminated (possibly wrongfully) and struggled to explore legal options due to this gap.

What’s more concerning? Some search fund law firms seem aware of this practice but allow it to continue, prioritizing deal closure over the CEO’s long-term protection.

Searchers who have raised this issue at closing often hear dismissive responses like:

“We trust you.” “We’ll sort it out later.”
But trust alone doesn’t hold up when conflicts arise.

Have you experienced this yourself? If you secured an employment agreement, how did you manage it? Why isn’t this a standard part of search fund deals? This is a critical issue for searchers, investors, and the broader community. Let’s talk about how we can change the narrative and set better precedents moving forward.