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The recent Richard L. Osborne ETA Symposium at Case Western Reserve University’s Weatherhead School of Management marked a significant milestone in Cleveland’s emergence as an Entrepreneurship Through Acquisition (ETA) leader. Attendance at the event exceeded 350 participants, surpassing the planned cap of 320. This year’s event, which was attended by Nick Fares of NEO Business Advisors, demonstrated the growing interest in business acquisition as a path to entrepreneurship.
The diverse attendance, comprising entrepreneurs, business intermediaries, M&A advisors, lenders, accountants, attorneys, and current business owners, showcased Northeast Ohio’s robust network supporting business transitions. The symposium included presentations on a variety of ETA related topics ranging from financing strategies and investor retention to discussions about specific industries to a presentation highlighting the numerous resources available in Northeast Ohio that assist both buyers and sellers.
Understanding ETA: A Path to Successful Business Ownership
Entrepreneurship Through Acquisition represents a compelling alternative to traditional startup ventures, offering significantly reduced risks and higher success rates. The statistics tell a striking story: while new business startups face a 90% failure rate, with only 10% of survivors reaching seven-figure revenues, ETA presents a markedly different picture. An impressive 67% of entrepreneurs pursuing the ETA path successfully acquire businesses already generating seven-figure revenues, typically in the $6-7 million range.
This success rate becomes particularly significant as we face unprecedented business transitions. With many baby boomer business owners in the 65-75 age range approaching retirement, the next five to ten years will substantially increase business ownership transitions. This demographic shift creates a unique opportunity for prepared buyers while offering sellers a pool of qualified, educated purchasers who can continue their business legacy.
The advantages of ETA over traditional startups extend beyond mere success rates. Acquired businesses have established customer bases, proven revenue streams, experienced employees, and existing operational systems. This foundation allows new owners to focus on growth and improvement rather than building from scratch, significantly reducing the risks associated with business ownership.
Cleveland’s Unique ETA Ecosystem
What sets Cleveland apart is its comprehensive network of educational and support resources for buyers and sellers. At the forefront is Case Western Reserve University’s Weatherhead School of Management, which has developed specialized ETA curriculum and programs under the guidance of experienced professionals like Professor Reid Tileston, who founded the Chicago Booth School of Business’s ETA program. This educational foundation ensures potential buyers enter the market with the knowledge and skills necessary for successful business ownership.
The Weatherhead School of Management offers multiple programs, including an ETA Bootcamp with Reid Tileston from January 10-12, 2025. This program will feature multiple speakers, including an advisor panel with Nick Fares, as a part of an intensive three-day program. This in-depth training focuses on the entire acquisition process, from finding and evaluating opportunities to financing, closing, and successfully leading an acquired business. Participants will learn practical skills and strategies for successful business acquisition and operation.
The City of Cleveland and surrounding municipalities offer various programs supporting business acquisition and growth, including attractive financing options and grant opportunities. This support extends throughout the “golden triangle” region between Cleveland, Akron/Canton, and Youngstown, an area dense with manufacturing opportunities. The region’s economic development organizations assist with facility expansion, equipment purchases, and workforce development, often offering favorable interest rates and terms to make acquisitions more feasible.
Supporting Organizations Making a Difference
Promise Partners, a nonprofit accelerator, provides crucial resources for aspiring business owners. Their innovative approach includes funding support for full-time business searchers, allowing them to focus entirely on finding the right acquisition opportunity. They also connect searchers with potential investors who provide capital and bring valuable expertise and mentorship to help ensure post-acquisition success. This unique model has helped create numerous successful transitions in the Northeast Ohio region.
On November 7th, Nick Fares presented at the Promise Partners Brokers Event, addressing over 40 program participants. This comprehensive presentation covered critical aspects of business acquisitions, including current market trends, the selling process, what buyers should expect, and how to position themselves for success. Attendees gained practical insights into the current M&A landscape and strategies for successful transactions.
Manufacturing Works is a local non-profit that focuses on helping business owners grow their operations while preparing for an eventual transition. Their comprehensive programming supports both current operations and future succession planning, ensuring businesses remain strong through ownership changes. They provide valuable education and resources for business owners who might otherwise consider simply closing their doors upon retirement, helping them understand the true value they’ve built and the options available for transition.
On October 8th, Nick Fares presented to the 6th Cohort of business owners going through the Manufacturing Works’ Ownership Transition Program. This year-long program begins with a first twelve-week focus on education about the selling process followed by an eight-month intensive deep dive into the specific challenges each participating business is currently facing. Nick’s presention to the cohort focused on getting from Letter of Intent (LOI) to closing with an executed Purchase Agreement, and everything to expect in between.
MAGNET further strengthens the manufacturing sector by bridging technology gaps and facilitating access to grants and funding. Their work connecting manufacturers with educational institutions helps build sustainable workforce pipelines, making businesses more attractive to potential buyers. They also play a crucial role in modernizing manufacturing operations through technology adoption and process improvement, enhancing business value for eventual sale.
The Value for Buyers and Sellers
For buyers, Cleveland’s ETA ecosystem provides educational resources and credentials that make them more attractive to potential sellers. This preparation is crucial, as sellers often prioritize finding buyers who can successfully continue their business legacy over simply accepting the highest offer. The comprehensive support system helps ensure buyers are well-prepared for acquisition and subsequent business operations.
For sellers, particularly those considering retirement, these programs ensure access to qualified, prepared buyers who can successfully continue their business legacy. This is especially important for business owners who have spent decades building their companies and care deeply about their employees, customers, and community impact. The ecosystem provides the peace of mind that their work will continue to thrive under new ownership.
Ready to Explore Your Options?
Whether you’re considering buying or selling a business, the resources and support available in Northeast Ohio can help ensure a successful transition. Contact Nick Fares at NEO Business Advisors to learn more about how to leverage these opportunities:
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– MAGNET