Learn about entrepreneurship through acquisition.
Building the future by acquiring the present — our strategies and experience with ETA.
The five paths of ETA
Search Fund
An entrepreneur raises money from a group of investors to spend 1–2 years searching for the right company, then raises more capital from the same investors to buy it and step in as CEO.
Best for
MBAs and professionals who want support and mentorship
Pros
Backed by experienced investors; can pay a salary during the search
Cons
Must give up significant ownership; pressure to find a deal fast
Self-Funded Search
The DIY version of ETA. The entrepreneur uses their own savings, or money from friends and family, to fund the search and purchase. More freedom — and more risk.
Best for
Operators with personal savings who want full control
Pros
Keep most or all of the equity; move quickly on deals
Cons
Lower budget means smaller businesses; you carry all the risk
Corporate ETA
An established team or firm — like Founders Mosaic — acquires and leads businesses as part of a long-term platform. It blends ETA with private equity principles, with an ownership mindset and often no intention to sell.
Best for
Founders looking for a legacy-minded buyer
Pros
Experienced leadership; flexible deal structure; long-term ownership, not quick flips
Cons
Less visibility than traditional PE; deal flow based on relationships, not brokers
Operator-in-Residence
An entrepreneur joins an investment firm before a deal closes. Once the firm acquires a company, the operator steps in as CEO.
Best for
Future CEOs without the capital to buy
Pros
Backed by an experienced firm; no personal money needed
Cons
Must wait for the right acquisition; may not choose the company
Family or Employee Succession
The next owner is already in the building: a family member, key employee or management team, often funded with loans or seller financing.
Best for
Founders ready to retire with loyal teams who want to own
Pros
Smooth transition and cultural continuity
Cons
Buyers may lack capital or leadership experience
Key terms, in plain English.
- Entrepreneurship Through Acquisition (ETA)
- Buying and building an existing business to grow and create long-term value, rather than starting from scratch.
- Search fund
- Investors back an entrepreneur for a 1–2 year search, then fund the acquisition; the searcher becomes CEO.
- Self-funded search
- The entrepreneur funds the search and purchase personally, keeping more equity and control.
- Corporate ETA
- An established team acquires and leads businesses as part of a long-term platform — Founders Mosaic’s model.
- Operator-in-Residence (OIR)
- An entrepreneur joins an investment firm before a deal and steps in as CEO once a company is acquired.
- Succession ETA
- A family member, key employee or management team buys out the original owner.
- Seller financing
- Part of the purchase price is paid to the seller over time — common in internal successions.
- Due diligence
- The buyer’s review of a company’s financials, operations and risks before closing.
- Owner-operator
- The new owner runs the business day to day, often as CEO or President.
- Hold period
- How long a buyer intends to own a business. Ours, ideally, is forever.
Helpful videos
Understanding the Basics of Entrepreneurship Through Acquisition — Event Series
The University of Chicago Booth School of Business
ETA — Entrepreneurship Through Acquisition Introduction
Joel Ankney, William & Mary Entrepreneurship Hub
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