Has your business reached a point where it needs a new CEO or partner to drive its continued development — without the owner necessarily wanting to sell or step back entirely?
Short answer: Bringing in an experienced CEO or partner can give the business new momentum, when the owner lacks the time, energy or specific management skills to take the business to the next level. It can be structured in several ways — as an employment, as a partnership with an ownership stake, or as a precursor to a future management buy-in.
When does it make sense?
- The owner wants to step back, but not sell the business yet
- The business has outgrown the owner's own management skills
- Specific experience is needed to drive the next phase — e.g. international expansion or professionalization
Employed CEO or partner with an ownership stake?
An employed CEO gives the owner full control over ownership, but less guarantee of long-term commitment. A partner with an ownership stake (fully or partly financed as an MBI) typically creates a stronger incentive to think long-term, but also means the owner shares control.
What do you need to have in place?
Clear boundaries for decision-making authority, a director's contract regulating termination and any non-compete clause, and — if an ownership stake is involved — an ownership agreement describing what happens if the partnership doesn't work, or if one party wants out again.
How do you find the right profile?
Be honest about what phase the business is in, and what you're actually offering — salary, ownership stake, influence. An experienced CEO candidate will quickly see through a listing that sounds better than reality.
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