Selling to ETA Buyers (Entrepreneurship Through Acquisition)

Jason Huett
Feb 11
4 min read

Quick Answer:

Entrepreneurship Through Acquisition (ETA) is a business strategy where aspiring business owners buy and operate existing businesses instead of starting from scratch. This approach is gaining traction thanks to high-profile success stories and specialized MBA programs, fueling demand for businesses, especially in markets like Dane County and Madison, Wisconsin.

If you are a business owner considering the sale of your business, there is a high probability that you will see buyers come through with an ETA background.

📌 Key Takeaways

ETA offers a proven alternative to traditional startups by acquiring established businesses.
Notable ETA examples include Codie Sanchez and Kyle Mallien, as well as graduates of elite programs at Booth (University of Chicago) and Wharton (University of Pennsylvania).
These programs teach practical skills: deal sourcing, valuation, negotiation, and operations.
The ETA movement increases demand for small and mid-sized businesses, making now an ideal time to sell with an experienced business broker in Dane County or Madison, WI.

What Is Entrepreneurship Through Acquisition (ETA)?

Entrepreneurship Through Acquisition (ETA) is the process of becoming a business owner by purchasing an existing business. Instead of building from the ground up, ETA entrepreneurs leverage established operations, cash flow, and customer bases, reducing risk and accelerating growth.

ETA in Action: Real-World Examples

As ETA has gained popularity, there is no shortage of examples on the web and social media that have leveraged their expertise. Full disclosure: like many things on the web or social media, there is a "glam" factor. If you can get past this factor and read into the core message of the expert, they can provide some excellent insight. However, just know that ETA isn't as easy as they make it sound.

Codie Sanchez: Known for acquiring cash-flowing small businesses, Codie champions ETA as a path to wealth and independence. Codie has a massive online following and is known for her live events.

Kyle Mallien: I am personally biased to Kyle's approach - he knows numbers better than anyone and also has an ETA program that guides his students through locating, buying, and operating local businesses.

MBA ETA Programs: Schools like the University of Chicago’s Booth School of Business and Wharton’s Venture Lab offer ETA tracks, providing aspiring owners with the tools and networks to find, analyze, and acquire businesses.

What Do ETA Programs Teach?

ETA-focused MBA and accelerator programs typically cover:

Sourcing deals and evaluating businesses
Financial analysis and valuation
Structuring acquisitions and negotiations
Post-acquisition operations and growth
Real-world case studies and mentorship

Sidenote: While these are all excellent areas for buyers to study, it is not a replacement for actual operations experience. If you are a business owner reading this, you know better than anyone that nothing can replace real-world experience in a business!

Why ETA Matters for Business Owners

You may be thinking, "ETA sounds fine, but what does this have to do with me?" Well, as these programs have grown exponentially across the country, so have the sheer number of buyers with ETA training.

This often results in a fiercer negotiation process, but also places most business owners at a significant disadvantage because these buyers come armed with sophisticated valuation tools, negotiation tactics, and strong data analytics tools for analyzing complex financials.

Working with a knowledgeable business broker ensures that a business owner can level the playing field and maximize their exit value.

Buyer Comparison

ASPECT	AMATEUR BUYER	ETA BUYER
Experience	Little or no acquisition experience	Trained, often MBA
Preparation	May overlook key documents or red flags	Conducts thorough due diligence and financial analysis
Deal Process	Process is informal, may skip critical steps	Follows structured process; knows industry standards
Financing	May struggle to secure financing or ask for high percentage of seller financing	Secures funding in advance; understands deal structure
Negotiation	May lack negotiation skills or market knowledge	Skilled negotiator; familiar with market terms
Speed & Efficiency	Slower, may cause delays with indecision or change direction	Moves quickly and decisively
Post Acquisition	May lack clear plan for running the business	Has plans for transition and growth
Risk Management	Often underestimates risks or go it alone	Mitigates risks with professional advisors
Impact on Seller	Higher likelihood of deal falling through	Smoother, more predictable transaction

FAQs:

Q: Who is ETA for?

A: ETA is ideal for aspiring entrepreneurs, MBA grads, and professionals seeking business ownership with less risk than a startup.

Q: What types of businesses are best for ETA?

A: Service-based, profitable businesses with stable cash flow — like those commonly listed by business brokers.

Q: How can I learn more about ETA?

A: Explore programs at Booth, Wharton, and other business schools, or connect with a local business broker to discuss opportunities.

Q: Is an ETA buyer a good buyer? A: Often they are, however, they are more sophisticated buyers which can pose challenges to first-time sellers.

If you are considering selling your business and would like professional guidance, contact us here.

To your success, Jason Huett CEO | Business Broker Collaborative Commercial Business Brokers, LLC.