We back a small number of outstanding mid-career entrepreneurs and operators to search for, acquire and operate a small business with private-equity support, resources and capital
The Current State of Search:
- Acquiring and operating a small business has proven to be one of the most lucrative career paths for top MBA grads, with the average “searcher” making $7.4 million in equity at exit
- This is despite the obvious challenges to the traditional search model: lack of committed capital, ad-hoc support and inefficient diligence processes with first-time acquirers
- We leverage our backgrounds in large cap PE and PE-backed executive roles to back a small number of more experienced operators:
- Providing the best of private equity sourcing, diligence and operating playbooks to our searchers
Brydon CEO in Residence (CIR) Program:
Brydon selects 6 entrepreneurs per year as Brydon CIRs
- We invest 95-100% of the equity to support a two-year search and 95-100% of the equity at the time of a transaction
- We encourage you to raise up to 5% of the capital from advisors who can be helpful in your search as mentors, however if you need help raising the additional 5%, we can provide it.
- Working with our CIRs, we have the flexibility to invest in businesses anywhere from $5 – 50 million in enterprise value, which drastically increases the number of opportunities our CIRs can pursue
- Brydon can also much more easily support follow-on acquisitions, tuck-ins and roll-up strategies with committed capital than is possible in traditional search
Requirements
CEO in Residence
- We welcome applicants from all backgrounds, but we generally look to partner with CIRs who have more work experience, typically 3-12 years out of business school or equivalent
- We are strong advocates of thesis-driven searches, where searchers focus heavily on sub-industries and niches where they have expertise
- Third-party research & our own experience has shown that these result in better outcomes for searchers in both the search and operating phase
- For example:
- You worked in banking or private equity on a PE-backed roll-up and see an opportunity to do the same with dedicated capital and support
- You are a McKinsey Associate Partner with extensive work and deep understanding of the growth levers in a sub-industry. Now you want to implement that knowledge by building equity value in a business you own and operate
- You’ve built relationships and qualifications in a sub-industry and believe there’s an opportunity to buy and build. For example, a former Navy submariner who can leverage your background to acquire a small nuclear services provider
- You worked at a successful tech startup in a vertical and know the space well. You see an opportunity to buy small mom and pop players in the space
- Do you have a thesis-based acquisition approach? Know an industry or have an angle on an interesting niche? We would love to discuss it
- Don’t have an industry thesis? We have several industries where we have deep relationships and experience and are looking for CIRs: Vertical software, nuclear services, aviation services, public safety / defense / national security, healthcare roll-up strategies, regulatory & government services, among others
- We’re happy to leverage our relationships and expertise to help you build out an area of focus for your search.
Benefits
Better Economics: Salary and Equity
- We fund our searchers at salary levels commensurate with their experience, between $150,000-200,000 per year (higher than traditional search)
- Searchers earn up to 25% of the equity in their deal (or 30% for partnered searchers), based on the standard vesting schedules (1/3 upon acquisition, 1/3 time-based vesting and 1/3 based on performance hurdles)
- Holistic Support: We know how mentally demanding a search can be; we provide a $5,000 stipend for all our CIRs to spend on physical or mental health during their search (e.g. to buy themselves a Peloton, Tonal, gym membership, yoga classes, etc.)
Mix of In-Person & Remote
- CIR program kicks off with 7 days of Brydon-funded cohort training in the Caribbean, followed by quarterly in-person events throughout the US
- Otherwise, we strongly encourage CIRs to base their search where they want to live and focus their search efforts
- You’re not alone: in addition to your cohort, we pay for your partner (or anyone else you would like!) to join the last two days of your initial cohort training in the Caribbean to learn more about search and meet the rest of your cohort
Better Support: Private Equity-Caliber Sourcing, Diligence and Operating Resources
- We have supported over 70 searchers and many are frustrated by having to “re-create the wheel” when it comes to sourcing, diligence, valuation, structuring and operating best practices
- We bring playbooks and best practices from large cap private equity and work hand-in-hand with our searchers to apply them to your small business search
- From day one, searchers get access to a full sourcing engine and support: a dedicated CRM and outreach software, training from experts in sourcing tactics / cadences/ processes, proprietary tools and integrated database support. Plus access to industry databases, introductions to brokers, bankers, CEOs and river guides, and full due diligence and valuation support
Application Process
- Please submit your application by April 1st, 2023
- Selected individuals undergo an interview and background-check process including several assessments.
- Final round interviews with managing partners including a case presentation
- CEO-in-Residence offers made by May 1st
- Cohort start date will be June 5th, 2023
- Any questions? Please email steve.ressler@brydon.com
- Brydon Information Session will be held Feb 16th from 12-1pm EST. RSVP here.
