Table Of Contents
What Is Acquisition Entrepreneurship?
Acquisition entrepreneurship means you buy and run an existing business. You look for a firm that meets your skills and budget. You raise money or use your own funds to make the purchase.
After you close the deal, you step into leadership.
You use your skills to grow the company further. This route appeals to people who want to own a business but want less risk than a startup. It also suits those who enjoy turning around small or mid-size firms.
Why People Choose It:
People choose acquisition entrepreneurship for three clear reasons as outlined below:
1. First, they see revenue from day one. They do not have to wait for product-market fit.
2. They can also tap into a proven business model. That reduces the guesswork.
3. And lastly, they use outside capital to boost returns. You can aim for high equity gains if you apply smart management.
We Help You Buy / Build, Manage and Scale E-commerce Brands for an EXIT
E-commerce Simplified for Busy Individuals – We handle the buying, building, and scaling, so you can focus on what matters.
Growth-Focused Strategies – From sourcing to marketing, we drive growth and prepare you for a profitable exit.
Expertly Managed Exits – We build a high-value brand designed for a Lucrative exit.
Common Acquisition Entrepreneurship Models
There are FIVE main models of entrepreneurship through acquisition. Each has its own mix of funding, risk, and search process.
Below, we'll briefly explain each of these top models:
#1. Traditional Search Fund Model
Investment Range: Search costs of $400 K–$1 M, then $2 M–$10 M of equity to buy a company worth $5 M–$50 M
Success/Failure Rate: About 75% of searchers find and buy a business, 67% go on to grow it successfully, and 73% of funds yield positive returns; still, roughly half of all search funds never close on a deal and only 16% deliver payouts above $10 M. (Source).
In this model, you form a “search fund.” You raise capital from investors before you pick a company to buy. You then use that money to cover your salary, travel, and fees for two years while you look.
You do not invest your own cash at this stage. If you find a deal, investors provide buyout capital too.
In 2023, a record 94 traditional search funds were launched in the U.S. and Canada (Stanford GSB). Those funds had an internal rate of return of 35.1% and a return on invested capital of 4.5x. (Source).
Over the past decade, about 63% of these search funds won a deal, up from a 57% average, according to SmashVC. This path suits MBAs or ex-consultants with strong networks.
Case Study: When Stanford grads Kevin Taweel and Jim Ellis bought a roadside-assistance firm for $8 M in 1995, they did it under the search fund model. They then built it into Asurion—a multi-billion-dollar business—showing the upside of this model.
#2. Self-Funded Model
Investment Range: Entrepreneurs use $50 K–$250 K of their own money (often plus SBA debt) to run the search, then raise debt and equity to buy deals of $1 M–$10 M enterprise value. (Source).
Success/Failure Rate: Solo searchers see average IRRs of 27%–30%, and investors can still earn 2× ROI even with zero growth; five of the six biggest 10× exits in recent years came from self-funded searches. (Source).
In the self-funded model, you use your own savings to search for a business to acquire. You skip the early investor round.
You look part-time or full-time while living off your funds.
You do all the work but keep more equity. You may hire advisors or pay for data out of pocket.
This model fits people with capital saved from prior jobs. It also fits those who want full control.
However, you face more risk if you search too long without backing. You might burn cash before you close a deal.
Case Study: A perfect real-life case of self-funded search is John’s story. Here’s what the self-funded searcher says: “I used my savings and an SBA loan to buy a $2 M e-commerce platform, then sold it for $10 M in five years, netting $3 M–$5 M for myself."
#3. Sponsored Search Fund Model
Investment Range: Virtually no upfront search fundraise; you source the deal, sign an LOI, then assemble $5 M–$75 M of debt and equity on a deal-by-deal basis (According to Morgandwestfield, most deals end up $10 M–$50 M enterprise value)
Success/Failure Rate: While hard to pin a single rate, independent sponsors are winning more deals as the support ecosystem grows. Firms like Sileo Capital now have their former sellers join as operating partners to boost success.
This hybrid blends the first two models we’ve discussed above. You simply raise a small amount to cover your search costs.
You keep some of your own cash on the table to show commitment.
Sponsors give you advice, deal flow, and connections. They share due diligence tasks and let you tap their networks.
A sponsored search fund may start with $200,000 to $300,000 of search capital and $50,000 of your personal capital.
Sponsors often come from private equity or family office backgrounds. They help you find companies and negotiate terms.
Case Study: A perfect example of the sponsored search model at work is Shane Mace, who sold his infrastructure services business to an independent sponsor, now works with Sileo Capital, and praises the model’s flexibility and real-world industry support.
We Help You Buy / Build, Manage and Scale E-commerce Brands for an EXIT
E-commerce Simplified for Busy Individuals – We handle the buying, building, and scaling, so you can focus on what matters.
Growth-Focused Strategies – From sourcing to marketing, we drive growth and prepare you for a profitable exit.
Expertly Managed Exits – We build a high-value brand designed for a Lucrative exit.
#4. Crowd-Funded Acquisition Model
Investment Range: In the search stage, the investors typically give you $ 300,000 to $ 600,000 to cover your salary, deal sourcing, due diligence, and overhead for 12–24 months. And in the acquisition stage, Investors commit to fund the buyout itself, which usually runs from $10 million to $50 million, depending on the target’s size.
Success/Failure rate: Roughly 30 percent of crowd-funded searches end up closing an acquisition within the planned search window. The other 70 percent either extend the search, pivot to another funding model, or wind down without a deal.
Here, you use an equity crowdfunding platform to raise money. You pitch to a large group of small investors. They each invest a small amount.
You set a minimum target and a deadline. If you hit the goal, you close the round. If not, you return the funds.
Crowd-funded deals let non-accredited investors join. You can raise $1 million to $5 million this way.
The model fits deals under $20 million in value. You need strong marketing skills to win enough backers online.
#5. Accelerated or Incubated Search Fund Model
Investment: You typically pay $100 K–$150 K to join an accelerator, which gives you search capital plus access to a network that can deploy up to $10 M of acquisition funding.
Success/Failure Rate: Traditional searchers face a 70% chance of earning little or nothing; accelerators aim to tilt odds in your favor, though independent data on close rates is limited.
Some accelerators now focus on search funds. They give you a stipend, office, and training for 6–12 months.
They run pitch days where you meet investors and lenders. They may take a fee or a small equity stake.
This model speeds up your learning curve. You gain from group workshops and peer support.
However, these programs often last only six months. You must find a deal fast or stretch the search on your own.
How To Pick the Right Model
Now that we have discussed the main acquisition entrepreneurship models, you might wonder, “Which one should I choose?”
Well, choosing the right investment model comes down to these three simple factors:
Think about who you know
If you have connections with investors or access to capital through friends or colleagues, a traditional fund could be a good fit. If you don’t know many backers, running your own self-fund makes sense; you put in most of the money and make decisions on your own.
Look at how much risk you can handle.
Bringing in outside money lets you share the downside and keeps more cash in your pocket if a deal goes south.
Consider the size of the opportunities you’re chasing
Small deals (under a few hundred thousand dollars) work well with self-fund or crowd-fund approaches. Bigger deals (think millions) will usually need a larger search fund with deeper pockets to win the bid and cover expenses.
Key Steps in Any Model
Regardless of which model you choose, the process follows a clear path as we have outlined below…
First, you’ll need to build a steady pipeline of potential deals so you always have options.
Next, you’ll need to screen each company by industry focus and size to find the right fit.
Then connect with owners, review their financials, and dig into the numbers.
After that, team up with advisors to run thorough due diligence. Once you understand the risks and opportunities, negotiate the price and key terms.
Finally, close the deal, help transition leadership smoothly, and set a concrete growth plan.
Just repeating these steps will help you smooth out the deal flow, reduce surprises, and give your new investment the best chance to grow.
The Growing Appeal of Online Business Acquisitions
Many beginner and experienced acquisition entrepreneurs now consider acquiring online businesses due to the benefits such businesses offer.
Such benefits include:
Lower upfront cost.
Remote management.
Proven traffic and sales.
Flexible scaling.
Diverse revenue streams.
Related: The Top 10 Benefits of Acquiring an E-Commerce Company
At Trend Hijacking, we simplify the process of acquiring an established online business for you.
We specialize in helping busy professionals acquire established e-commerce businesses.
Using our years of experience in the e-commerce industry, we help you spot the best deals, run due diligence, and lead negotiations on your behalf.
After the acquisition, we help you scale operations. We optimize marketing, streamline systems, and improve conversion rates.
We aim to boost profits and prepare for a strong exit. Our team guides you at every step to secure value and growth.
Related: Is A Ready-to-run E-commerce Business For Sale Right For You?
Related: 10 Hidden Truths About Buying An Established E-Commerce Website
Conclusion
Acquisition entrepreneurship lets you buy a business with less risk. You can pick models like a fully backed search fund, a self-funded search, crowdfunding, or an accelerator. Search funds bring investor support and high returns. Self-funding keeps more equity. Crowdfunding opens doors to smaller backers. Accelerators speed up learning. Choose the model that fits your network, cash, and risk comfort. Then follow a clear path to search, buy, and grow.
Need help buying an online business? Our Acquisition Partnership program guides you every step of the way. We’ll find profitable businesses ready for purchase, handle due diligence and negotiations, and make the deal simple. Once you’ve closed, we stay by your side—helping you run day-to-day, scale revenue 2–4×, and set up a smooth, profitable exit. Let us turn your acquisition into a success story.
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