Let's talk about Entrepreneurship through Acquisition (ETA)....

Entrepreneurship through acquisition (ETA) has some legit buzz right now, with conferences, courses, and lifestyle appeal. However, the reality is a bit messier than the idea.

We recently spoke with an M7 career director about what's happening in ETA, and the insights are a wake-up call. Of 100 MBA candidates who want to buy a business, maybe 10% actually do it.

𝐄𝐓𝐀 𝐢𝐬 𝐚 𝐬𝐚𝐥𝐞𝐬 𝐣𝐨𝐛

Until you find a company to acquire, you're making hundreds of cold calls every day. The job is convincing retiring business owners to sell – and many of them aren't ready.

As the career director put it: "The reality is convincing someone who's retiring to sell their business. Until you find the company, it's sales combined with market research."

𝐓𝐡𝐞 𝐛𝐞𝐬𝐭 𝐭𝐚𝐫𝐠𝐞𝐭𝐬 𝐚𝐫𝐞 𝐚𝐥𝐫𝐞𝐚𝐝𝐲 𝐠𝐨𝐧𝐞

PE funds have been active in the ETA space, making it "very hard for individual searchers to find companies that haven't already been scooped up."

That leaves the smallest possible businesses as targets – think laundromats, vending machine distributors, etc. For students with loans to repay, the risk and returns don't usually pencil.

𝐖𝐡𝐚𝐭 𝐝𝐨𝐞𝐬 𝐭𝐡𝐢𝐬 𝐦𝐞𝐚𝐧 𝐟𝐨𝐫 𝐌𝐁𝐀 𝐜𝐚𝐧𝐝𝐢𝐝𝐚𝐭𝐞𝐬?

➕ ETA is a long-term play, not as often an immediate post-MBA move – most students realize that "two or three steps down the road, this is something I'm going to do"

➕ You need serious risk tolerance – you could spend your entire MBA searching, with no guarantee of finding a target

➕ The economics are worth considering – if you have significant loans, going after small acquisitions may not make financial sense

ETA can be a great path... for the right person, at the right time.
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Видео Let's talk about Entrepreneurship through Acquisition (ETA).... канала Behind the MBA by MBA Pathfinders