I am not a big fan of the use of abbreviations in communication.  It has been my experience that depending on the context and the parties involved that their use can result in confusion. The “hot” abbreviation in the mergers & acquisitions world currently is ETA or Entrepreneurship Through Acquisition in its long form.  If you have not heard the phrase or have been confused through its usage you are not alone. The phrase originated in 2011 as the title for a popular elective course at the Harvard Business School taught by Richard Ruback and Royce Yudkoff.  In the class, the professors taught a concept to students that IBA has been teaching as guest lecturers at universities, colleges, and vocational schools for over fifty years.  The story of Mike Nekhai & Khasha Mekanik acquiring a company through IBA that was told in our American Dream Achieved series started with one of those guest lecturer sessions by an IBA business broker at the University of Washington (https://ibainc.com/blog/nesha-ruther/the-story-of-mike-nekahi-khasha-mekanik-black-pine-spas/).

The synopsis of the concept is that it is often prudent to buy an existing company versus starting a new one as an entrepreneur.  The advantages of buying a business versus founding one in a green field are as follows:

1. Revenue & profit exist on day one of acquisition.
2. Tangible assets exist in terms of facilities, furniture, fixtures, and equipment which can be bought as a lot.
3. Customers, vendors, and employees exist on day one of acquisition.
4. A market identity for the business has been established.
5. An online presence exists including a website and reviews.
6. The ability likely exists to receive personal income and service debt at time of acquisition.

The advantages of starting a new business include the following:

1. An identified opportunity can be taken advantage of in the marketplace.
2. The entrepreneur’s vision can be executed on in their preferred way.
3. The location, equipment, and staff can be selected.
4. If the correct space is identified, being first to market can be extremely lucrative.   

There are numerous examples of entrepreneurial success employing both pathways to business ownership.  Business brokerage would not exist as a career option or industry if the professional representation of entrepreneurs in the sale and purchase of privately held companies and family businesses did not have a robust marketplace for facilitating transactions.  IBA has successfully transitioned business ownership from one party to another over 4400 times since 1975 in the states of Washington and Oregon.  The transactions have involved founder business owners and parties who had previously acquired established businesses, many times previously from IBA, like when IBA sold Mike Nekahi & Khasha Mekanik’s business for them after they had owned & operated it successfully for multiple years.

Some additional reasons why entrepreneurship through acquisition is attractive include the following:

1. Many times the knowledge and skill set necessary to executively manage a business changes over time.  Originating and implementing an idea is very different than doing something at scale.  Starbucks was founded by Gordon Bowker, who recently passed away (https://seattle.eater.com/restaurant-news/88559/gordon-bowker-seattle-entrepreneur-starbucks-founder-obit), Jerry Baldwin, and Zev Siegl in 1971.  In 1987, they sold it to Howard Schultz and a group of investors.  If Mr. Schultz had not bought the company it likely would not be the global brand it is today.   The representation of founder owners who recognize their limitations is one of IBA’s favorite demographic groups of clients to serve, as their focus is commonly on what is best for their company.
2. The most common reason businesses fail is undercapitalization (https://www.uschamber.com/co/start/strategy/why-small-businesses-fail).  Starting a business can be very expensive from building out infrastructure to hiring and paying people before a company is profitable.  21.5% of businesses fail in their first year and almost 50% fail in their first five years (https://www.lendingtree.com/business/small/failure-rate/).  Acquiring a business that is over five years old involves a company that has verified a business model can be successful.
3. It is much easier to take a business from $3 million to $8 million in revenue than zero to $8 million.  The first situation involves scaling something that is working and has systems, processes, staff, and a customer base in place where the latter one involves building a marketplace and customer demand.  I personally made the decision to buy an existing business rather than start my own firm in 2000. This year, I celebrated my 25^th year as the owner of IBA, an equal term to the founder of the company, G. William Ososke.

Entrepreneurship through acquisition is a time tested strategy for success.  It is a common career path decision by company executives who desire to leave corporate hierarchies because they have hit glass ceilings preventing them from advancing to the top of the pyramid and taking the helm of the ship.  Making the transition does not need to be made alone or without resources.  Resources available to support business acquisition include national organizations like the Acquisition Lab (https://acquisitionlab.com/), who recently had me participate in person on two panel discussions at their summit in St. Louis, local seasoned buyer side representatives like John Martinka who has written multiple books and has a podcast (https://ibainc.com/videos/getting-the-deal-done-podcast-interview-with-gregory-kovsky/), and literature such as Walker Deilbel’s Buy Then Build (https://www.amazon.com/Buy-Then-Build-Acquisition-Entrepreneurs/dp/1544501137).

One final positive element available in the United States to support the entrepreneurship through acquisition transition is access to government backed capital to support the action in the form of SBA loans.  To the best of my knowledge, no other country in the world supports entrepreneurship as proactively as the American government.  It is common for buyers using this tool to be able to acquire businesses with as little as 10 – 20% capital injection themselves.  In 2025, IBA has seen a spectrum of banks support business acquisitions of companies in virtually all of the industry segments (https://ibainc.com/industries-served/) we support as business sale intermediaries. Preferred SBA lenders IBA recommends include KeyBank, Live Oak Bank, Huntington Bank, US Bank, Washington Trust Bank, Banner Bank, Columbia Bank, First Interstate Bank, Summit Bank, First Internet Bank, First Citizens Bank, and Gesa Credit Union.  If as a business buyer, you ever need a recommendation for a SBA lender, IBA would welcome the opportunity to introduce someone with a record of performance, superior customer service, knowledge, and experience.

Statistically entrepreneurs make more than the employed in the United States (https://fortune.com/2025/09/27/entrepreneur-earnings-self-employed-vs-paid-employees-founders/).  If entrepreneurship through acquisition is a 2026 objective, it is our hope at IBA that you will consider one of our representation projects for purchase.

IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, mergers & acquisitions, real estate, legal, and accounting communities on subjects relevant to the purchase & sale of privately held companies and family-owned businesses.  IBA is recognized as one of the best business brokerage firms in the nation based on its long track record of successfully negotiating “win-win” business sale transactions in environments of full disclosure employing “best practices”.