Entrepreneurship Through Acquisition (ETA) is a rising trend among MBA students, including those at Olin Business School at Washington University in St. Louis. While Olin is renowned for its MBA entrepreneurship program, the interest in ETA is rapidly growing among students like Max Kleeman and Drake Hill.
Kleeman is on the lookout for a small to medium-sized service company, preferably in healthcare or home services, in areas like Chicago, St. Louis, or metropolitan areas in the West. On the other hand, Hill is more geographically focused, aiming to stay in the Midwest close to his family in Illinois, with a desire to build a company that offers a good return without tying him to an office chair.
Both Kleeman and Hill, after graduating from Olin, have chosen to forgo traditional MBA career paths in consulting or banking. Instead, they are actively seeking out small, family-owned businesses to buy, run, and grow with the skills they acquired during their time at Olin.
ETA, which involves finding, buying, and operating established small to medium-sized businesses, is gaining popularity at business schools nationwide. Schools like Northwestern’s Kellogg, Wharton, Dartmouth Tuck, Duke Fuqua, Babson, and Case Western are offering ETA courses and resources to support aspiring entrepreneurs in this space.
The appeal of ETA lies in the stability and profitability of small businesses, which account for a significant portion of the U.S. economy. With a tougher job market in traditional sectors like consulting and banking, many MBAs are turning to entrepreneurship, with ETA offering a viable alternative for those interested in acquiring existing businesses.
At Olin Business School, ETA is gaining traction with courses like Entrepreneurship Through Acquisition and Ownership Insights. The school also has a student-led ETA Club and graduates actively searching for their first acquisitions. The program aims to equip students with the skills needed to grow and manage acquired businesses successfully.
While startups often steal the spotlight, ETA provides a more practical and potentially less risky path to entrepreneurship for many MBA students. Various approaches to ETA include traditional search funds, sponsored searches, and self-funded searches, each offering different levels of support and risk.
Kleeman and Hill are pursuing a self-funded search with the guidance of Brian Wolfe, an attorney and adjunct professor at WashU’s School of Law. Wolfe, through his private investment firm Funded Ventures, is helping students like Kleeman and Hill navigate the process of acquiring and growing small businesses.
For Kleeman and Hill, the shift from traditional career paths to ETA represents a desire for meaningful work, financial return, and a better work-life balance. As they embark on their journey to acquire and grow small businesses, they exemplify the growing interest in ETA among MBA students looking for a different path to entrepreneurship.
In conclusion, ETA is emerging as a compelling option for MBA students seeking to enter the world of entrepreneurship through acquiring and growing small businesses. With the support of programs like those at Olin Business School, students like Kleeman and Hill are poised to make a meaningful impact in the business world while creating opportunities for themselves and their communities.
