Definition
ETA
Entrepreneurship Through Acquisition — the practice of buying an existing business rather than founding one.
Definition
Entrepreneurship Through Acquisition (ETA) refers to the path of becoming a business owner by acquiring an existing profitable business rather than starting from scratch. ETA practitioners (often called "searchers" or "independent sponsors") buy SMBs with proven revenue, existing customers, and an established team — reducing the risk of the startup phase. The ETA community has grown significantly since the 2010s, particularly among MBA graduates from top business schools.
Worked Example
Instead of launching a new accounting firm, an ETA practitioner acquires an established practice with $1.2M revenue and 8 staff. They take over operations from the retiring owner and use the existing cash flow to service the acquisition debt.
Related Terms
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