EPS7545 The Entrepreneurial Extension: Buying a Small Business
1.5 Credits
This course explores the process and mechanics of buying an existing small business, a practice often referred to as Entrepreneurship Through Acquisition (ETA). We will examine various entrepreneurial acquisition models, techniques for sourcing and screening opportunities, common types and structures of debt financing, typical deal terms, and key aspects of legal and financial due diligence.
While small business acquisitions share similarities with larger M&A transactions and leveraged buyouts (LBOs) utilized by private equity (PE) firms, they are highly entrepreneurial and come with unique challenges and nuances. In fact, ETA has evolved into its own distinct asset class, complete with specialized models and methods.
Our learning approach will combine lectures, readings, case studies, and supplemental materials, all tailored to the elements of a small business acquisition. Additionally, we will host guest speakers with hands-on experience in the field, including searcher-operators, investors, and professionals who specialize in conducting due diligence for ETA deals, to provide practical insights and real-world perspectives.
Prerequisites: None
**It is recommended that students also take EPS7530 (M&A for Entrepreneurs) in order to develop a deep understanding of the M&A process**