Acquiring Existing Businesses: The Rise of Entrepreneurship Through Acquisition

Published on May 1, 2024

In recent years, there has been a surge in popularity for "Entrepreneurship Through Acquisition" courses at prestigious Ivy League MBA programs, surpassing traditional classes in marketing or corporate finance. This trend reflects a shift in aspirations among MBA students, many of whom now prioritize acquiring an existing business over roles in consulting or banking.

As a business owner, you are likely to encounter increased interest from these eager MBA graduates who are keen on acquiring your company with the backing of individuals or firms that specialize in funding these first-time entrepreneurs.

One such example is Steve Divitikos, a Harvard MBA graduate who decided to acquire and build a small business using money he raised from investors. The episode covers several important aspects of selling your business to an acquisition entrepreneur, including:

1. Structuring the sale of your business to an acquisition entrepreneur.

2. Negotiating strategies with an acquisition entrepreneur.

3. Avoiding the most common reasons for acquisitions to fall apart.

4. Preparing for and excelling in meetings with potential acquirers.

5. Identifying complementary acquirers who can bring synergies to your business.

6. Avoiding the need to roll over equity with your acquirer.

Steve Divitikos is a prime example of the growing trend of MBA graduates seeking to acquire and build small businesses, rather than pursuing traditional corporate roles. With the backing of specialized investors, these acquisition entrepreneurs are actively seeking out businesses to acquire and grow.

Divitikos, having completed his MBA at Harvard, made the decision to leverage his education and resources to acquire and build a small business. His journey highlights the shift in mindset among MBA graduates, who are increasingly drawn to the entrepreneurial path of acquiring and growing existing businesses, rather than pursuing more conventional roles in consulting or banking.

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