Buy Vs Build
The Acquisition Entrepreneurship Model: Buying vs. Building
Becoming a Business Owner Through Acquisition
- Self-funded search phase: Entrepreneurs identify target businesses while maintaining income sources or living on savings
- Financial structure leverages SBA financing: Government-backed loans provide up to 80% of purchase price with a personal guarantee
- Capital-efficient entry: Searchers typically need only 5-10% of business value in capital to acquire a profitable operation
ACQUISITION FINANCING STRUCTURE
Why Now? The Silver Tsunami of SMB Ownership Transfer
“Most small businesses need a buyer, not a founder.”
— Live Oak Bank
Market Forces
- 10,000+ Baby Boomers retire every day — many own profitable, cash-flowing small businesses
- 2.3M SMBs owned by Boomers will require new ownership in the coming decade
- 70%+ of business owners have no formal succession plan in place
- Over $10T in business value is projected to change hands in the next 10–15 years
National Impact
- 33M+ small businesses operate in the U.S.
- SMBs account for 44% of U.S. GDP
- They provide 49% of all U.S. jobs
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The generational handoff is underway
— and ETA is how you participate in it
