Worcester Business Journal

September 8, 2025

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neurship experi- ence. However, the process of search- ing and acquiring a pre-established business requires many steps. at is where advisors like Jim DeLeo, co- chair of Canton-based CPA firm Gray, Gray and Gray's transaction advisory services, come in. "We'll help them make sure that the value they think they're acquiring is actually the value that they're acquiring," DeLeo said. "And then we'll also give them insight and guidance … as well as what it's going to look like aer they acquire the business." DeLeo said he is seeing many post-graduates going down the search- er route, due to growing search fund incubators at several schools including Harvard University, Massachusetts Insti- tute of Technology, Babson College, and Stanford University. e 2024 Search Fund Study by Stan- ford said 48% of new searchers in 2023 reported enrollment in an entrepreneur- ship-through-acquisition class, up from 37% in 2022. e chance to turbo charge their careers by starting in the CEO seat at a young age is another attraction for new business school graduates, said DeLeo. Investors & search funds Most searchers go out to find an investor to fund their salary for a couple years while they look for a business to acquire, and then look for investors who will fund their acquisition. Investors are oen a safety net of professionals with experience who can provide coaching, which looks more appealing to business- es, said DeLeo. is was the case for Stimpson who had one investor fund his search, and then went to look for additional inves- tors when he was ready to buy Mitten. He put out a message on LinkedIn, and people stepped up and wanted to invest, he said. "Raising the money was actually the easiest part," Stimpson said. "If you find the right company and structure the transaction the right way, like me, that could be the easiest part of the process." DeLeo has worked with both types of searchers, those with and with- out investors, and his CPA firm's prima- ry role is to be the eyes and ears from a F O C U S LAW & ACCOUNTING Becoming a CEO How the growing popularity of search funds led a former Central Mass. banker to expand his business into Shrewsbury BY SARA BEDIGIAN Special to WBJ S haun Stimpson always en- visioned himself owning a business. So, he decided at 44 years old to leave his job in the banking industry and set out on a new career path: to find, acquire, and run a business through a search fund. A search fund is when investors financially support oen inexperienced entrepreneurs' efforts to locate, acquire, manage, and grow a privately-owned business, according to Stanford Gradu- ate School of Business. Irv Grousbeck, who is former co-owner of the Boston Celtics and adjunct professor at Stan- ford, created the search fund in 1984. e number of search funds remains relatively low, as Stanford identifies 681 formed in the U.S. and Canada since 1984, although the number appears to be climbing. A record number of 94 core search funds launched in 2023, the last year with available data. Nine companies in Massachusetts have been acquired by search funds. Stimpson had one search investor who funded his 18-month search to find a business to acquire. When looking for a business, Stimpson focused national- ly in the industrial distribution space, eventually buying Syracuse-based Mit- ten Fluidpower in 2022. When looking for companies, Stimp- son said he wanted a company that was already well established, so he could quickly learn the knowledge base and get up to speed on the products and pricing. "e learning curve wasn't that steep, and it was mainly because I knew they were already running the day to day. ey just lacked the kind of the strategy of how to grow," Stimpson said. He has worked to bring marketing strategies using social media and other avenues to culminate growth in the three businesses he owns today: Mitten, Frank Murken in Schenectady, New York, and FLN-MAR Rubber and Plas- tics in Holyoke. Stimpson, who worked in Worcester for Morgan Stanley at 100 Front St. from 2008 to 2012, is now planning on expanding his businesses into Central Massachusetts. He has seen the city go through a resurgence of growth, one of the reasons why he wants to put a satel- lite FLN-MAR location in Shrewsbury, right outside of Worcester. e FLN-MAR location in Shrews- bury will open this fall. He decided to expand into Central Massachusetts for the growth potential of the area and to provide better service to its existing customer base. Since FLN MAR already has a base of customers in that area, with a local location, he plans to be a stronger resource to them. The appeal of search funds Search funds allow recent business graduates the opportunity to become a CEO right out of school. As opposed to starting a business from scratch, a searcher can take over an already developed company, with the backing of investors to gain entrepre- Jim DeLeo, co-chair of Gray, Gray and Gray PHOTO | COURTESY OF SHAUN STIMPSON 14 Worcester Business Journal | September 8, 2025 | wbjournal.com Ross Porter, founder of Heritage Holding Shaun Stimpson worked in Down- town Worcester before switching careers to buy a company, which is expanding to Shrewsbury.

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