The future is looking bright for businesses, with Entrepreneurship Through Acquisition (ETA) offering an exciting way to achieve business goals.

Entrepreneurship Through Acquisition (ETA) is an increasingly popular route into business ownership across the UK. Rather than building a business from scratch, the ETA model encourages ambitious entrepreneurs to acquire established companies and step into ownership. This is a valuable opportunity to take on a proven business model with existing operational infrastructure and a loyal customer base - offering a far more streamlined route to ownership.

Instead of launching a start-up, ETA allows aspiring entrepreneurs to acquire a well-established business and take over leadership. With thousands of profitable UK businesses expected to change hands in the coming years, ETA presents a timely and strategic opportunity - and in 2025, it’s more accessible than ever.

This article explores the role of entrepreneurship through acquisition, the process involved, its benefits, its current popularity in the UK, and how GS Verde Group’s multi-discipline team can help your business complete an ETA with confidence.

What is Entrepreneurship Through Acquisition:

ETA is the process of identifying, acquiring, and running an existing business. The acquirer may be a first-time buyer, an investor, or a small group of business partners. After the purchase completes, the buyer then steps into an operational role and becomes responsible for leading and growing the existing company.

This approach bypasses many of the common challenges that start-ups face, such as:

• Creating a customer base from scratch
• Gaining market traction
• Hiring and training a full team
• Developing brand awareness and reputation
• Navigating inconsistent cash flow in the early stages of the business.

By choosing the ETA route, the entrepreneur can inherit an existing business and focus on developing it further.

The ETA process: How to Acquire a Business

• Defining your goals and criteria: Decide the type of business you want to target. This can be done by considering the target’s industry, location, size, staff requirements, and the type of role you want to play when you acquire.
• Identifying potential targets: This involves online marketplaces, networks and corporate advisors to help identify both listed and off-market businesses.
• Conducting due diligence: By working with advisors to review financials, legal matters, contracts, intellectual property and employee agreements, buyers can fully understand what they’re buying and address any challenges.
• Structuring the deal and securing funding: Agreeing terms with the seller and securing a suitable funding package - which may include debt and deferred payments - helps balance cash requirements with value protection.
• Completing the acquisition: Once legal documents are finalised and funding is secured, the sale is then completed through a Share Purchase Agreement (SPA) or an Asset Purchase Agreement (APA). This is where the buyer becomes the new owner of the target business and the transition process begins.
• Transitioning and leading: After the purchase is complete, the buyer can take control of the business - sometimes with the seller staying on briefly to deliver the handover. At this time, the buyer will get to know the team, retain key customers, and prepare for the business’s next stage of growth.

Key Benefits of ETA:

There are many benefits of ETA, including:

• Immediate revenue and cash flow: One of the benefits of acquiring an already established and profitable business means that a buyer can benefit from reliable cash flow from day one post-completion. This allows the new owner to earn a salary and reinvest in the company without any delay.
• Proven operations and systems: Inheriting an already established business means adopting existing systems, processes, operations, supply chains and employees. This setup provides the buyer with a head start without having to build internal functions from the ground up.
• Reduced risk: An ETA allows for due diligence to be conducted on the seller, with the buyer having full access to the seller’s trading history, financial records and operational data. From this, the buyer can make informed decisions based on what they know about their target business and mitigate any risks.
• Opportunity for growth: Having a new buyer can modernise a business’s systems, expand its geographical footprint, diversify the services it offers, or introduce new technology into its operations to unlock fresh growth potential.

Who is ETA suitable for:

ETA is a flexible model that appeals to a wide range of acquirers, including:

• Mid-career professionals: Individuals seeking independence from corporate life, with leadership experience and a desire to control their own future.
• Investors and business owners: Business owners seeking portfolio growth or investment in a standalone, profitable business.
• Entrepreneurial individuals: Buyers with a clear vision and drive who want to buy a business through the ETA route rather than starting from scratch.
• Strategic buyers: Companies looking to acquire complementary businesses to expand their customer base or geographic footprint.

Why ETA Is Popular for UK Entrepreneurs:

The UK is experiencing a wave of business ownership transitions, with more companies being acquired through ETA because of entrepreneurs retiring or wanting to explore exit planning opportunities. These companies are often established and successful within their market - with stable trading histories, a loyal customer base and experienced teams.

Securing acquisition funding is more achievable nowadays, with a wide range of funding options available for buyers, such as:

• Bank finance: This option is widely available for buyers to acquire businesses with a respectable cash flow and proven profitability.
• Private equity: Private equity is a valuable route for buyers and is used to support entrepreneurial acquisitions.
• Search funds: This enables entrepreneurs to raise capital from investors before finding their target business.
• Vendor financing: Vendor financing can be used to negotiate directly with the seller to reduce the initial capital expenditure.

Entrepreneurship Through Acquisition: Expert advice from GS Verde Group

ETA offers a fast, strategic and lower-risk route compared to other ways of buying a business, so it’s essential to have the right expert support every step of the way to ensure your business’s future success.

At GS Verde Group, we provide fully integrated guidance to entrepreneurs and investors who are considering ETA - combining our in-house team of legal, corporate finance, tax, accountancy and communications experts under one roof. Our ‘One Team’ approach ensures a seamless process from start to finish, with tailored support at every stage - from identifying the right business and structuring the deal, to conducting due diligence, completing the transaction, and supporting post-acquisition integration,

Whether you are exploring your first acquisition or expanding your existing portfolio, our multi-discipline advisory team is with you every step of the way. Our joined-up team offer expert advice and tailored guidance designed to help your business navigate complexities and achieve long-term success through ownership.

By choosing GS Verde Group’s expert guidance when it comes to your ETA journey, we provide clarity, confidence, and successful outcomes for your business’s long-term success.

Contact GS Verde Group’s expert advisors today.