MBAs Seeking Independence from Corporate Life

In mid-2019, Dan Schweber was navigating yet another shift in his career trajectory. Post-college, he joined a healthcare consultancy firm, initially believing it was his ideal job, but soon found the corporate grind unrewarding. Moving to a small healthtech startup seemed promising until it was absorbed into larger entities, ultimately leading to his layoff. This series of events spurred his resolve to control his destiny by founding his own company. By 28, Schweber had enrolled in Columbia’s executive MBA program, squeezing startup brainstorming into his spare moments between work and study.

A year later, Schweber's business vision focused on a mobile app for physical therapy exercises, inspired by his own outdated treatment experience. Though intrigued, doubts plagued him: who would develop the app, secure customers, or manage initial financial instability amidst his student debt? The daunting challenge of launching a new business from scratch, against poor odds of success, seemed insurmountable. His solution emerged in the form of a unique class on 'search funds'—a concept of entrepreneurship via acquisition instead of creation, previously unknown to him.

By the first class’s end, Schweber was sold on this idea. He recalls thinking, “I can absolutely do this.” Fast forward to 36, he’s now running a company, steering its direction as he once dreamed.

Search funds offer an alternate route to becoming an owner-CEO without the need to build from scratch. Instead, aspirants purchase thriving businesses, complete with clientele and earnings. The majority of such opportunities lie in mundane sectors—think car washes or plumbing—yet these stable entities are precisely the draw. Elevating through acquisition naturally presents less risk, buttressed by investor funds that support the search process. Once a prospective business is identified, further financing aids acquisition and leadership assumption.

I first encountered the search fund concept from a friend transitioning into it after leaving venture capital. Others followed suit, igniting a trend among highly-qualified MBAs pursuing CEO roles of modest enterprises. The initiative traces back to 1984 via an HBS professor's vision of accessible entrepreneurship for ambitious students. Momentum grew slowly until the recent pandemic accelerated interest, supported by academic courses and new-age influencers spreading awareness, drawing $1.5 billion in fresh investments over four years.

The pandemic reshaped our work lives, diluting the allure of traditional corporate advancement. An increasing number from the younger generation, including qualified millennials, now favor entrepreneurship—as demonstrated by Schweber’s acquisition of the Fairfax-based Atlantic Duct Cleaning in 2022.

Even today, Schweber's enthusiasm exudes youthful vigor. “It’s fantastic,” he exclaims, resolute about avoiding corporate life’s return. A lifetime of ambition marked his early years in Atlanta, channeling energy into ventures as basic as neighborhood newsletters.

Finally, by 2022, and after 22 months fruitlessly seeking acquisition targets, Schweber was determined not to finish empty-handed. A search through Google Maps led to Atlantic Duct Cleaning—a small enterprise run by Tom Keys, eluding traditional business appeal but promising potential.

Persistent emails and genuine interest convinced Keys to connect with Schweber, and three months of diligence finalized the purchase. Overcoming family skepticism and enduring rigorous searches proved Schweber’s capability, eventually securing ownership and celebrating this with champagne.

Initial anxieties marked his early days as CEO. New responsibilities and potential pitfalls loomed—a misstep could mean failing as a business leader, dreaded consequences looming large including stakeholder disapproval and operational chaos.

Today, Schweber’s ambitions target making Atlantic a $25 million enterprise by 2028, a financial leap that requires substantial operational innovation. Under his leadership, infrastructure—and personnel—expanded, with higher salaries attracting the talent necessary for ambitious targets. Steps taken have been costly yet necessary for the growth trajectory envisioned.

Despite the pressure, Schweber thrives in his role, savoring the autonomy to make substantive business decisions, be they major like health coverage or minor like casual dress codes. Such freedom starkly contrasts former rigid corporate settings and fuels his entrepreneurial spirit.

This shift from corporate monotony to entrepreneurial vigor represents a burgeoning trend among the elite MBA segment seeking both opportunity and autonomy in ownership, reversing classic notions of corporate accomplishment for hands-on leadership in establishing larger economic impact and personal fulfillment.

Schweber’s experience reflects a broader realization that true control in one's career—overseeing a whole business—requires both audacity and dedication, aptly summed up in his advice: “Commit fully, burn the safety nets.”