Why Search Funds need a ruthless/ no-bullshit board

Let’s be clear: if you’re running a search fund without a high-caliber board, you’re playing a dangerous game. You’re betting millions (mostly other people’s money) on your ability to acquire and grow a company—without an experienced brain trust watching your blind spots. That’s a recipe for costly mistakes, wasted time, and possibly a slow death spiral.

The right board isn’t a formality. It’s your strategic weapon. It keeps you from getting high on your own supply, holds you accountable to real progress, and, when necessary, tells you to stop being an idiot. 

1. You Don’t Know What You Don’t Know

Search funds attract smart, ambitious people—often from consulting, investment banking, or PE backgrounds. But operating a business is an entirely different beast. Most searchers have never dealt with frontline employees, operational fires, or the sheer grind of making a payroll.

A board fills the experience gaps. You need people who have been there, done that—who can tell you when your five-year strategic plan is complete nonsense or when your obsession with spreadsheets is distracting from actually running the business.

2. Medium-Term Accountability (Where Progress Actually Happens)

Investors are looking at the big picture: valuation growth, IRR, and eventual exit. Your employees? They care about their next paycheck and daily tasks. But in between those time horizons, real business-building happens.

A strong board forces you to focus on the stuff that makes or breaks a company—hiring the right people, building a functional sales engine, tightening operations, and scaling in a way that doesn’t implode. No board? No one’s holding your feet to the fire.

3. Reinventing the Wheel is a Waste of Time

Searchers love frameworks—EOS, Traction, OKRs. Great. But you don’t have time to waste experimenting with what works. A well-structured board brings operators who already know what works and what doesn’t. They tell you what’s worth implementing now and what’s just another business book gimmick.

4. The Right Board Helps You Avoid Being a King Without a Kingdom

If you’re a self-funded searcher, you might be thinking, “Why would I create a board if I don’t have to?” Here’s why: unchecked decision-making is a liability. Just because no one can fire you doesn’t mean you shouldn’t build in accountability.

A great board stops you from believing your own hype. It challenges your assumptions, questions your decisions, and prevents you from going full “lone-wolf CEO” (which almost always ends in disaster).

5. Pay Board Members (Yes, Even If It’s Below Market Rate)

If you want real commitment, pay your board members. It doesn’t have to be market rate—search funds are lean by design—but if you don’t compensate them at all, every ask feels like a favor. And people get tired of favors.

A paid board member is invested in showing up prepared, providing real insights, and holding you accountable. If you go the unpaid route, expect generic advice, canceled meetings, and lukewarm engagement.

The right approach:

• Pay a modest but respectful below-market rate. Enough that board members feel valued, but not enough that it’s purely a financial gig.

• Consider performance-driven incentives—equity, bonuses, or even increasing pay as the company grows can help overall alignment.

• Make it clear: this isn’t a nice-to-have role. You expect real contribution.

6. Audit Your Board: 360 Feedback & Replacements Are Necessary

This is where most searchers drop the ball. A board isn’t a set-it-and-forget-it group. If you’re serious about building a high-performing business, you need to treat your board the same way you’d treat a leadership team: evaluate, optimize, and cut dead weight.

After 1-2 years, conduct 360-degree feedback on every board member. Ask yourself (and other board members):

• Are they actually showing up prepared?

• Are their contributions pushing the business forward?

• Do they challenge my thinking, or just nod along?

• Are they engaged, or just collecting a check?

If someone isn’t adding value, replace them. Board seats aren’t lifetime appointments.

7. The Right Mix of People Matters

A board stacked with only investors? Bad idea. A board made up entirely of your business-school buddies? Worse idea. You need diversity of experience. Here’s the mix you should aim for:

• The Operator (War-Tested CEO): Someone who has actually run a business similar in size and complexity. They’ll save you from rookie leadership mistakes.

• The Industry Insider: Knows the nuances of your sector, the key players, and where the bodies are buried.

• The Scaler: Has successfully taken a company from $5M to $50M+. They help you see around corners as you grow.

• The Brutally Honest Friend: Not a yes-man. This person calls out your BS and tells you when you’re making emotional decisions instead of strategic ones.

• The Investor (But Not Too Many): One or two investors is fine—they keep you focused on value creation. But a board full of capital guys can lead to short-term thinking and financial engineering over real company-building.

How to Actually Get These People on Board

No fluff. No vague networking. Make the ask directly:

Example Ask for a Board Member

Subject: Quick Ask – Advisory Board Opportunity

Hey [Name],

I’ll keep this short. I’m acquiring a business in [industry], and I need the right people in my corner to help navigate [specific challenges—e.g., scaling operations, hiring, industry shifts]. Your experience with [relevant expertise] would be invaluable.

The commitment:

• Quarterly 1.5-hour board meetings (virtual, early weekday morning)

• Pre-read materials in advance (I’ll keep it concise)

• Occasional ad hoc calls or emails (only when critical)

This is a paid role—but you won’t get rich from it. My goal is to make sure your time is valued while keeping the company’s resources focused on growth. More than anything, I want this to be engaging and worthwhile for you.

Would you be open to discussing? Zero pressure, and happy to answer any questions.

Thanks,

[Your Name]

Final Thought: Get a Board and Audit Them—Or Get Ready to Learn Everything the Hard Way

Search funds aren’t about proving how smart you are. They’re about executing, adapting, and growing a real business. Without an engaged, and accountable board to keep you grounded, you’re setting yourself up for unforced errors that could have been avoided.

So, do you want to maximize your chances of success, or do you want to be another searcher who thought they could do it alone and crashed and burned?