Table Of Contents
What Is Entrepreneurship Through Acquisition?
Entrepreneurship through acquisition (ETA)—also known as acquisition entrepreneurship—refers to acquiring an existing business and then operating and growing it, instead of launching a brand-new startup.
This approach attracts professionals who want to deploy their skills on proven business platforms, rather than navigating the uncertainties of product-market fit and early-stage fundraising.
Some of the most common ETA models include:
Traditional Search Fund: This model involves raising a blind pool of capital from investors to fund a dedicated search
Self-Funded (“Fundless Sponsor”): In this model, you use personal savings or debt to finance search costs and acquisition.
Sponsored Search Fund: This involves partnering with institutional sponsors who provide capital and mentorship.
Crowd-Funded Acquisitions: As the name suggests, this model requires you to utilize online platforms to pool small-ticket investors around a target deal.
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.
The Baby Boomer Succession Wave And Acquisition Entrepreneurship Growth
One of the biggest reasons acquisition entrepreneurship is growing is the retirement of baby boomer business owners.
Baby boomers (those born between 1946 and 1964) own around 12 million businesses across the United States.
These businesses represent an estimated $10 trillion in assets, according to the California Association of Business Brokers.
As these owners approach retirement, many plan to sell rather than pass their businesses to family members.
ExitGuide estimates that 65 to 75 percent of small businesses will hit the market over the next decade because of this generational shift.
This wave is not only historic in size but also in timing. Many of these businesses are profitable, long-running, and stable. But without successors, they risk closing.
This opens a large window of opportunity for younger buyers and aspiring entrepreneurs to take over.
Instead of starting from zero, they can buy into something proven.
The boomer exit is fueling one of the largest transfers of small business ownership in modern history, and acquisition entrepreneurs are well-positioned to benefit.
Record Growth in Search Funds
Search funds are a popular way for entrepreneurs to buy businesses, especially among younger buyers.
In 2023, North America saw a record 94 new core search funds launched, according to The SMB Center.
This steady rise shows how more people see acquisition as a real and repeatable way to become business owners.
The 2024 Search Fund Study from Stanford, which looks at data through the end of 2023, gives more insight into why this model is attracting attention:
It reports that search funds formed since 1984 have delivered an average internal rate of return (IRR) of 35.1% and a return on investment (ROI) of 4.5×.
These returns are not just strong—they’re competitive with, and in many cases better than, traditional investment options like venture capital or real estate.
Because of this performance, more aspiring owners are exploring search funds. They see them as a practical way to take control of an existing business and scale it.
For many, this route now looks less risky—and more rewarding—than starting from scratch.
How Acquisition Helps You Cut Early Risk
Starting a new company carries high failure rates. Most startups never reach break-even. They often struggle with product-market fit and cash crunches.
Acquisition deals start with working operations. They carry existing customers and revenue. As a buyer, you can focus on improving margins and scaling instead of proving demand.
This fact appeals to people who seek a lower-risk path to ownership. It also appeals to those who want to apply management skills to real businesses.
Here are the key benefits of buying an already-established business:
Start earning immediately: Buying an existing business means you start earning from day one. There’s no wait to earn revenue. Lenders prefer proven earnings, so financing is even easier. Buyers can use real data to track EBITDA and plan growth with confidence.
Established Brand and Customer Base: An existing business has a known brand, steady (loyal) customers, and supplier ties. This lowers your marketing costs and speeds upscaling. Buyers can test changes using real traffic and sales data.
Access to Financing: Acquisition deals offer you many funding paths. Buyers combine SBA loans, seller financing, and equity partners. These options reduce upfront cash needs and support smoother growth after purchase.
Challenges in Acquisition Entrepreneurship
While buying a business helps you avoid startup risks, it also exposes you to new challenges as outlined below:
Managing valuation and due diligence: Valuing a business requires adjusting seller numbers. You must check for one-time earnings, customer risks, and legal problems. They also review digital metrics and use experts to catch red flags.
Transitioning ownership smoothly: Sellers often stay on for a few months post-sale. You need clear plans, offer bonuses to key staff, align vendors, and communicate well to keep customers and operations steady.
Financing risks: Too much debt can strain cash flow. You need backup funds, should test downside cases, and work with lenders who support your growth goals. Mixing financing sources helps reduce risk from rate changes.
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.
Industry Outlook and Trends For Acquisition Entrepreneurship
The outlook for acquisition entrepreneurship continues to grow. Experts expect the number of search fund launches to keep climbing.
According to The SMB Center and the 2024 Stanford study, 2023 saw a record number of new search funds, with over 90 first-time funds launched that year.
These funds often deliver strong returns on exit, which keeps attracting interest from ambitious professionals and investors.
However, the data also shows real risks. Only 16 percent of search funds reach payouts over $10 million, and nearly half never close an acquisition.
These numbers reveal a clear divide between those who succeed and those who stall. The difference often comes down to preparation.
Because of these mixed results, training, mentorship, and strong support networks are more important than ever.
Many successful buyers now join programs like Search Fund Accelerator or connect through platforms like Searchfunder.com.
These resources offer guidance, deal flow tips, and access to experienced advisors. As the space matures, the gap between well-prepared searchers and casual entrants is likely to grow.
Why You Should Acquire An Online Business Today
As an aspiring acquisition entrepreneur looking to ride on this wave of entrepreneurship, you might wonder what the best type of business to acquire is.
We recommend buying an online business;
Like any other business, this type of business allows you to start earning from day one and gain loyal customers. Plus, you also gain access to the following:
Built-in website traffic
Customer data and email lists
Supplier relationships and logistics setups
According to Statista, global e-commerce sales reached $5.7 trillion in 2022, showing a strong shift in consumer buying trends.
These are the key benefits of acquiring an established online business:
You can use seller financing to lower your upfront cost and negotiate terms based on real numbers.
Overhead is often lower online than in a physical store since you avoid rent and many utility bills.
You can run the business remotely, which fits today’s work-from-anywhere lifestyle.
You also inherit tested processes—inventory management, marketing funnels, and customer support—so you spend less time on trial and error.
Finally, you can scale quickly by adding new products, entering new markets, or improving your website’s conversion.
Acquiring an e-commerce store lets you focus on growth rather than startup risk.
How We Help Aspiring Acquisition Entrepreneurs
At Trend Hijacking, we specialize in helping new and aspiring acquisition entrepreneurs like you buy profitable online stores with real growth potential.
Our team supports you through every step—from finding the right business to closing the deal and scaling it.
We guide you through due diligence to verify revenue, traffic, and operations.
We help you negotiate fair deal terms that protect your investment.
Once you take ownership, we work with you to grow the business. Many of our clients scale to 2–4× their original earnings within 12–24 months.
Whether you’re buying your first e-commerce store or adding to your portfolio, we give you the tools and support to succeed.
Our goal is to help you increase profitability and position the business for a strong exit down the road.
With the right strategy and a proven business, you can build real wealth through acquisition. Let us help you make it happen.
The Growth of Online Marketplaces
Online marketplaces have made it much easier to buy and sell businesses. Platforms like Flippa and Empire Flippers now list hundreds of digital businesses at any time.
These include e-commerce stores, content sites, SaaS companies, and more.
You can browse by revenue, profit, niche, or traffic source, which makes the search faster and more focused.
The process is also more direct. You can view detailed listings, contact sellers, and make offers—all online. Sellers benefit from global exposure, which increases their chances of finding serious buyers quickly.
This open access shortens deal timelines and gives both sides more control.
These platforms also offer you support tools, such as due diligence help, migration services, and valuation estimates. This adds trust to the process, especially for first-time buyers.
As more people look for digital income sources, the role of online marketplaces continues to grow.
They now serve as key entry points for acquisition entrepreneurs who want speed, choice, and transparency.
FAQs About Entrepreneurship Acquisition
What’s the difference between a search fund and a self-funded acquisition?
A search fund raises investor capital to fund both search and acquisition, whereas a self-funded sponsor uses personal capital for search expenses and sources acquisition financing separately.
How much capital do I need to acquire an online business?
Targets typically range from $500K–$5M in revenue, requiring $100K–$1M of EBITDA; you may need 20–30% equity and 70–80% debt financing.
What online marketplaces list acquisition targets?
Popular platforms include Flippa, Empire Flippers, Motion Invest, and Quiet Light.
Can I acquire an Amazon FBA business?
Yes, FBA businesses often have recurring revenues but require scrutiny of Amazon seller metrics, buy-box stability, and supplier relationships.
How soon can I expect a return on investment?
Most ETA buyers aim for a 3–5× equity multiple over a 3–5 year hold period, though cash-flow positive businesses may produce dividends sooner.
Conclusion
Acquisition entrepreneurship offers you a clear path to business ownership. It brings lower early risk, immediate cash flow, and established customers. However, it needs careful financing and transition planning. Yet, for many, it offers a faster, more data-driven route to leadership and returns than a startup. As the market grows, more entrepreneurs continue to choose this path. If you seek to own and grow a business, consider acquisition entrepreneurship. It may match your skills and goals.
Ready to own an online business without the guesswork? Join our Acquisition Partnership program and we’ll help you find ready-to-buy opportunities, handle all due diligence and deal talks, and guide you through closing. Once you’re the new owner, we’ll stay on board to streamline operations, drive growth up to 3×, and set you up for a winning exit. Let’s make your acquisition a success today!
A Done-For-You E-commerce Business
Discover how we Build, Launch, and Scale a 6-figure/month Business for You
Learn more
