By: Scott Duncan / A. J. Wasserstein
This Yale case study examines the entrepreneurial journey of Scott Duncan (HBS 2017), who pursued the ETA path through a self-funded SF. It highlights both the operational challenges of acquiring and running a small business, and the profound personal and emotional toll of failure.
Background & motivation:
Duncan grew up in Massachusetts in an engineering family and built an early interest in entrepreneurship. After several years working in medical device startups, he pursued an MBA at Harvard Business School, where he was introduced to ETA. Drawn to the promise of ownership and financial independence, Duncan decided against corporate recruiting and instead launched a self-funded search immediately after graduation in 2017.
Acquisition of F&M Tool and Die
One of Duncan’s early opportunities was F&M Tool and Die, a 40-year-old injection mold manufacturer with about $3.6M in revenue and strong EBITDA margins. After an initial rejection, Duncan returned to the deal when the price was lowered and ultimately acquired the company through an SBA-backed structure.
Operating journey and challenges
The story unfolds over 5 turbulent years:
- Year 1 (2018–2019): Shock and instability
Duncan faced immediate setbacks: key employees quit, a major customer defected, and the new office manager committed fraud. Revenues fell sharply, and cash nearly ran out. Late in the year, large customer orders provided temporary relief, but profitability remained thin.
- Year 2 (2020): COVID-19 disruption
The pandemic caused layoffs, shutdowns, and intense uncertainty. Duncan himself was diagnosed with severe depression. PPP loans and debt deferrals offered breathing room, and he used the downtime to modernize systems and purchase a new CNC machine. Despite progress, cultural resistance on the shop floor persisted.
- Years 3–4 (2021–2022): Recovery and expansion
A new operations manager stabilized the floor, and Duncan launched a small injection molding division that quickly generated $500k in revenue. Customer relationships shifted toward larger corporations, driving growth: annualized bookings rose to ~$6M. However, steel price inflation, mispriced contracts, and a shift toward large project-based work eroded profitability.
- Year 5 (2023): New facility, renewed struggles
Duncan moved operations into a modern facility, impressing customers but straining cash flow. Although quoting reached record levels ($26M), actual bookings collapsed to just $2.8M. Layoffs resumed, and the company fell into another liquidity crisis.
Collapse & bankruptcy
In 2024, despite restructuring attempts and vendor negotiations, revenue stalled. Lawsuits and creditor harassment escalated, even targeting Duncan’s family. By early 2025, with no lease, no cash, and no orders, Duncan shut down F&M Tool and filed for personal bankruptcy.
Personal & emotional toll
Duncan’s reflections form the heart of the case. He describes:
- The grief of losing his entrepreneurial dream and a career path he had pursued since college.
- Severe stress, health issues, and depression, worsened by financial and operational crises.
- The strain on family life, despite unwavering support from his wife.
- Career uncertainty: while recruiters value his unique experience, his skills do not fit neatly into traditional roles.
Yet, he also recognizes newfound resilience, crisis management skills, and entrepreneurial independence, qualities he hopes will guide his future endeavors.
Lessons learned:
The case emphasizes that credentials, hard work, and pedigree are no guarantee of ETA success. Even well-prepared, high-potential entrepreneurs can fail dramatically. SFs are powerful vehicles but also fraught with risk, and would-be searchers must prepare not only for growth and success but also for failure, bankruptcy, and personal sacrifice.
Read the full case in: https://som.yale.edu/sites/default/files/2025-08/Scott%20Duncan%20%E2%80%93%20Exploring%20a%20Search%20Fund%20Bankruptcy.pdf
