How Business Acquisition Can Drive Wealth Creation, Job Growth, and Economic Resilience
Research Report by Next Street and The Coppia Group
Executive Summary
Entrepreneurship Through Acquisition (ETA) offers a powerful alternative to traditional startup pathways—allowing entrepreneurs to step into established, revenue-generating businesses rather than starting from scratch.
At a time when over 50% of U.S. employer businesses—nearly 3 million firms—are owned by individuals nearing retirement, the need for scalable succession solutions has never been greater.
Without intervention, many of these businesses risk closure due to:
Lack of succession planning (2 out of 3 owners unprepared)
Limited access to acquisition-ready capital
Fragmented support systems for new owners
ETA addresses this challenge by:
Preserving existing businesses and jobs
Creating a faster, lower-risk pathway to entrepreneurship
Unlocking wealth-building opportunities for a new generation of owners
This report provides a look into how ETA is a proven, yet underutilized, strategy that enables entrepreneurs to acquire and grow existing businesses—unlocking wealth creation, preserving jobs, and strengthening local economies.
Top Line Takeaways
1. A Time-Sensitive Opportunity to Preserve Businesses and Jobs
Economic Impact: Nearly 3 million U.S. businesses are owned by individuals nearing retirement, representing a critical share of local employment and economic activity.
Continuity Risk: With 2 in 3 owners lacking a succession plan, many viable businesses face closure—putting jobs, community stability, and local wealth at risk.
2. A Proven Pathway to Ownership and Wealth Creation
Wealth Potential: Business ownership is a key driver of wealth, with owners of employer firms averaging $3.5M in net worth vs. $400K for non-owners.
Entrepreneurship Alternative: ETA provides a faster, lower-risk pathway to ownership compared to startups—enabling entrepreneurs to acquire established businesses with existing revenue, customers, and operations.
3. Strong Investment Returns and Market Viability
Attractive Returns: ETA-backed acquisitions (e.g., search funds) have generated 35%+ IRR and ~4.5x ROI, demonstrating strong financial performance.
Market Validation: Established businesses offer immediate cash flow and operational infrastructure, making ETA a compelling investment strategy for both entrepreneurs and capital providers.
4. Capital Access Is the Primary Constraint to Scale
Financing Gaps: Traditional capital markets are not designed for acquisition entrepreneurs—limiting access to equity, debt, and flexible financing structures.
The “Missing Middle” of Capital: While options exist (e.g., SBA loans, private credit, search funds), they remain fragmented, opaque, or inaccessible to many first-time entrepreneurs—particularly those outside traditional networks.
5. A Catalyst for Job Creation and Local Economic Growth
Job Creation: Small businesses have driven 61% of net new jobs in the U.S., underscoring their role in economic expansion.
Community Impact: Up to 68% of small business revenue stays within local communities, reinforcing the importance of business continuity through ownership transitions.
6. A Scalable Model Requires Ecosystem Coordination
Ecosystem Gaps: ETA remains underdeveloped due to limited awareness, fragmented support systems, and insufficient coordination across stakeholders.
Path Forward: Scaling ETA will require aligned action across government, capital providers, and intermediaries—including expanded financing solutions, education, and partnership models to unlock opportunity at scale.
Read the Full Report
Access the full “Scaling Entrepreneurship Through Acquisition” report to learn:
How ETA works and why it matters now
Capital models and financing pathways
Strategies to scale ETA across markets
Recommendations for institutions and investors
