What to Know Before Selling to an ETA Buyer | Built to Sell Radio

Most owners have received the email. It usually starts with something flattering: “I love what you’ve built…” Then comes the ask: a quick call to learn more about your business. Increasingly, those emails are coming from ETA buyers — entrepreneurs using “entrepreneurship through acquisition” as their path into business ownership. Instead of starting a company from scratch, they look to buy an existing business and run it themselves. In this week’s episode of Built to Sell Radio, John Warrillow talks with Will Smith, host of Acquiring Minds, one of the leading podcasts covering entrepreneurship through acquisition. In this episode, you’ll discover how to: Tell the difference between a funded searcher and a self-funded buyer. Understand why some ETA buyers use heavy debt to buy a business. Spot the hidden risk in a seller note. Decide whether a young buyer has the leadership chops to run your company. Protect your employees from a buyer who may not fit your culture. Ask better questions before signing a letter of intent. Judge whether a buyer can actually close. ETA buyers can be a gift to owners of profitable niche businesses that may not attract private equity or a strategic acquirer. But they can also be risky. A buyer may need your financing to get the deal done. They may still need to raise money after you sign an LOI. They may look good on paper, but struggle to lead the people who helped you build the business. That’s why this episode is worth your time. Before you take the next call from someone who says they “love what you’ve built,” listen to this conversation.