Did you know that you can become your own boss without starting a business from the ground up? With the Entrepreneurship Through Acquisition (ETA) approach, individuals can purchase already successful small to mid-sized businesses and scale them further. Also known as acquisition entrepreneurship, ETA offers a promising career path for both aspiring and seasoned entrepreneurs who are skilled in leadership and business operations.

Over the past decade, ETA has gained momentum. Today, many business schools and universities offer strong support systems for ETA enthusiasts ranging from student clubs and networking events to mentorship programs and specialized ETA fellowships. While buying a business might seem different from the conventional idea of starting one, it’s simply another route to business ownership and growth.

Let’s explore how you can identify the right business to acquire and secure the funding to make it happen.

How to Choose the Right Business to Buy

For someone new to the Entrepreneurship Through Acquisition (ETA) space, it might be unclear why a successful business owner would want to sell. The reasons vary some may be pursuing new opportunities, while others are navigating major life events but the most common factor is retirement. Baby boomers, the youngest of whom are now in their early 60s, currently own over half of all privately held businesses. As they prepare to step away, this wave of retirements often called the silver tsunami is creating a surge in available businesses, fueling interest in the ETA model.

The process of finding the ideal business to buy can be time-consuming and discouraging, sometimes stretching over many months or even years. Like any entrepreneurial venture, there are financial risks involved, including the possibility of a failed investment. But with persistence and smart searching, success is within reach. Below are some effective methods to guide your search:

1. Find and Evaluate Potential Opportunities

As you begin your search, assess whether a specific industry or type of business aligns with your background, expertise, and interests. Once you've identified your niche, tap into your existing contacts and actively expand your network to uncover acquisition opportunities. Engaging in conversations with business owners and industry professionals can lead to promising leads sometimes even a cold outreach can open doors.

Start by conducting basic research and reaching out to owners who might be considering retirement or selling, or who can refer you to others in that position. Don’t overlook those who previously expressed interest in selling but later changed their minds circumstances change, and they may now be open to revisiting the conversation.

He also notes that the majority of successful acquisitions don’t come directly from these platforms. However, exploring online sources such as social media or subscribing to relevant newsletters can still be useful in your search. Some helpful online tools include:

• ETA-focused brokerage websites
• Newsletters, webinars, or mentorship programs
• Marketplaces that list businesses for sale by location, industry, revenue, price, or financing availability

Whether you’re networking in person or browsing online, expect to come across a large number of unsuitable opportunities. Sorting through them is part of the process, and it’s perfectly normal if only a small percentage of leads are actually viable for acquisition.

2. Get a Feel for the Company Culture

Spend time at the business’s office, facility, or worksite to understand how it operates day-to-day. Talk with employees, observe interactions, and get a sense of the overall work environment. The level of access you’ll have depends on your relationship with the seller and how far along you are in the deal process. Pay attention to whether the company’s culture aligns with your leadership style, core values, personality, and preferred lifestyle.

Also, evaluate whether the current owner’s approach to management aligns with your own. If it’s a remote-first company, attend virtual meetings to get a sense of employee engagement or visit in person if you can.

3. Evaluate the Online Footprint

Check the company’s digital presence, including its social media profiles and website. Review what kind of image the business presents and how it interacts with its audience. For customer-facing companies, examine reviews and comments across platforms. While a few bad reviews are common, pay attention to patterns that suggest recurring issues or customer dissatisfaction.

You can also look up the business on trusted sites like the Better Business Bureau or search for media coverage to learn more about its reputation and performance.

4. Adopt a Flexible Mindset

Once the acquisition is complete, you officially step into the role of owner and operator. From day one, you're hands-on—overseeing everything from payroll and technology to marketing and daily operations. Even if you have experience in the same sector or have run a similar business, unexpected challenges are bound to come up.

Take the time to listen to employees and understand how internal processes really work. Identify areas where improvements are needed—whether that’s refining hiring practices, letting go of underperformance, or optimizing the supply chain. Stay open, remain adaptable, and continue learning as you grow into your role.

Funding Options for Entrepreneurship Through Acquisition

While Entrepreneurship Through Acquisition (ETA) offers a faster path to business ownership by purchasing an existing company, most entrepreneurs still need funding—both during their search phase and at the time of purchase. The financing method chosen depends largely on available resources, investor networks, and the price tag of the target business.

Self-Financed Acquisitions

Some entrepreneurs have enough personal savings to buy a business outright. However, many opt for a self-funded search, combining their own capital with external financing—most commonly through Small Business Administration (SBA) loans. This blended funding approach allows the entrepreneur to retain more ownership and decision-making power than if they were relying solely on external investors.

Search Fund Model

Search funds have gained popularity in the ETA space over recent years, especially among graduates of business school incubators, accelerators, and fellowship programs. In this approach, a searcher partners with around 10 to 15 investors—typically a mix of angel investors and private equity backers—who offer both capital and strategic guidance.

The fund generally covers the searcher’s salary and search-related costs (often up to $550,000). Once a business is identified, the original investors are given priority to invest in the acquisition. If the deal proceeds, they contribute additional funds to finalize the purchase. Entrepreneurs often work with a formal board of advisors or maintain casual mentoring relationships with these investors. When the business is eventually sold, investors often see returns as high as 35%.

Independent Sponsors

This model is more investor-driven than entrepreneur-led. Here, a group of investors identifies a viable business (or group of businesses), secures the deal, and then hires a CEO to run it—who may or may not be the original entrepreneur. Instead of an entrepreneur seeking funding, this method reverses the roles, with the investors searching for operational leadership.

Seller-Financed Deals

In some cases, the current owner offers seller financing, meaning they agree to finance part of the deal themselves. The buyer then repays that portion over time, similar to a loan. Sometimes, the seller also keeps a small equity stake in the company, ensuring they have a continued interest in the business’s success.

Private Equity-Backed Search Funds

This model mirrors the structure of a traditional search fund, but all backing comes from private equity firms rather than individual investors. These firms specialize in supporting ETA transactions using institutional or pooled investor capital.

It’s important to note that private equity ETA firms differ from traditional M&A-focused private equity groups. Instead of flipping distressed businesses for short-term gain, ETA PE firms focus on acquiring solid companies with long-term growth potential, aligning their goals more closely with the entrepreneur’s.

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