In 2026 choose to build your future - not someone elses!

Entrepreneurship Through Acquisition (ETA) is important in 2026 due to the convergence of demographic shifts, lower-risk path to ownership, strong financial returns, and growing institutional support. 

ETA is an increasingly popular and viable strategy for those seeking to become owners and CEOs, leveraging existing foundations to achieve faster, more predictable success than traditional startups. 

Key Drivers of ETA's Importance in 2026

The "Silver Tsunami" of Business Transitions: A significant wave of Baby Boomer business owners are retiring, many without a clear succession plan. In Canada alone, an estimated $2 trillion in small business assets is expected to change hands, creating a vast supply of established, profitable companies available for acquisition.

Reduced Risk Compared to Startups: With approximately 90% of startups failing in their first year, ETA offers a much less risky path to entrepreneurship. Acquired businesses come with proven business models, existing customer bases, established operations, and immediate cash flow, allowing the new owner to focus on growth and innovation rather than building from scratch.

Attractive Financial Performance: Search funds, a common model for ETA, have historically shown strong returns for investors. The 2024 Stanford GSB study reported an aggregate pre-tax Internal Rate of Return (IRR) of 35.1% and a 4.5x return on investment (ROI).

Increased Access to Capital and Support: Access to financing options is expanding, with institutions becoming more comfortable with the ETA model. In the U.S., Small Business Administration (SBA) loans can finance a large portion of an acquisition. Business schools and online communities are also offering more education, mentorship, and networking opportunities to support aspiring acquisition entrepreneurs.

Economic and Social Impact: ETA helps preserve jobs and strengthens local economies by ensuring the continuity of existing businesses that might otherwise close down due to a lack of succession. There is also a growing interest in "Social ETA," which aims to create pathways for underrepresented groups to become business owners and implement socially impactful practices like employee ownership plans. 

LEARN HOW!

zoli@zoandcoventures.com