What Is Entrepreneurship Through Acquisition?

By Tyler Sadek | July 2025

If you’ve ever dreamed of running your own business—but weren’t quite sold on building one from scratch—there’s another path that’s quietly becoming the go-to move for smart, hands-on entrepreneurs:

It’s called Entrepreneurship Through Acquisition, or ETA.

Instead of starting a new company from the ground up, ETA is about buying a business that already exists, taking the reins, and building from there.

Why Choose Acquisition Over Starting from Scratch?

Starting a company from zero can be exciting—but it’s also risky. Most new startups never make it past the early stages. With ETA, you’re stepping into something that’s already working:

• It has customers

• It has cash flow

• It has a track record

You’re not inventing a wheel—you’re buying one that’s already rolling, then adding your own power to make it go farther and faster.

How ETA Actually Works

The process is pretty straightforward—even if it requires a lot of work behind the scenes.

1. You search for a business to buy — This could be a family-owned company, a service firm, or a niche B2B operation.

2. You find funding — You can use your own savings (self-funded) or raise money from investors (search fund).

3. You acquire the business — Once due diligence is done, you officially take over.

4. You step in as the new owner-operator — Often as CEO or President.

5. You grow it — You improve operations, build the team, and create long-term value.

The goal isn’t just to flip it. It’s to lead it, build it, and make it even better.

ETA Comes in Different Flavors

There isn’t one “correct” path. The ETA model has a few variations:

  • Search Funds — Backed by investors, this path gives you capital to look for a company and then buy it. (Popular among MBAs.)

  • Self-Funded Search — You raise your own money and retain more ownership/control.

  • Corporate ETA — A model like Founders Mosaic, where seasoned operators acquire and grow businesses over the long term.

  • Operator-in-Residence — You join a firm and take the helm after an acquisition.

  • Succession ETA — Employees or family members buy out the original owner.

Each approach has its own risks, rewards, and ideal candidates—but the underlying idea is the same: buy, run, grow.

Real Risks, Real Rewards

ETA isn’t for everyone. It’s demanding. The pressure is real. You may not find the perfect company to buy. You may take over and hit unexpected turbulence.

But when it works, it really works:

  • You get real operational leadership experience.

  • You build lasting equity.

  • You own something tangible, meaningful, and—often—legacy-driven.

It’s no surprise that ETA is exploding in popularity. Search funds and entrepreneurial acquisitions are now being taught at schools like Harvard, Stanford, and Chicago Booth. Investors are lining up to back the next wave of owner-operators.

Want to Learn More?

Check out these excellent resources:

• Babson College — What Is Entrepreneurial Acquisition, and Why Is It Booming?

• UVA Darden — Why MBAs Are Choosing ETA

• Kellogg Insight — Entrepreneurship Through Acquisition Is Still Entrepreneurship

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At Founders Mosaic, we’ve lived this model firsthand. Our team has acquired, built, and led companies across industries—and we believe in the power of acquiring well-run businesses and growing them with care, curiosity, and conviction.