Why Acquisition Entrepreneurship Is Growing in Philly

Philadelphia has always been a city built on practical operators. We’re a region of family businesses, tradespeople, manufacturers, medical practices, service companies, and neighborhood shops that have been kept alive by owners who show up every day and put the work in. It’s no surprise that Entrepreneurship Through Acquisition (ETA) is starting to take hold here. The model fits the city: buy a real business, take care of the team, run it well, grow it over time.

In my day-to-day as an SBA lender, I’m talking with people across the region who are either buying their first business or thinking about it. The interest is real and it’s growing. This article lays out what ETA actually is, why it’s gaining traction in Philly, and where people can plug into the ecosystem.

What ETA Really Looks Like

Entrepreneurship Through Acquisition (ETA) is simple at its core. Instead of building something from the ground up, an entrepreneur buys an existing small business with actual revenue, customers, employees, and history. You step in as the operator. You run it. You grow it.

Why people choose ETA:

• It lowers the early-stage risk that comes with startups.

• You’re working with proven cash flow from day one.

• Ownership is immediate instead of theoretical.

• It’s a faster path to becoming a CEO.

And there are a few ways people do it:

• Self-funded search using SBA financing.

• Traditional search funds backed by investors.

• Independent sponsors doing one deal at a time.

At the end of the day, it’s about taking over a healthy business and giving it new energy.

Why ETA Is Growing Nationally

A few big forces are pushing this forward:

• The Wharton School now has a $10 million ETA program, which shows how mainstream this path has become.

• Business owners across the country are retiring, creating real succession opportunities.

• Entrepreneurship centers everywhere are adding ETA, search funds, and acquisition strategy to their programming.

ETA hits a sweet spot between stability and ambition. You’re not dreaming up an app—you’re stepping into a business that’s been serving customers for 20 or 30 years.

The ETA Scene in Philadelphia

Philly is one of the most underrated ETA markets in the country, and here’s why.

1. Philly’s universities are leaning into acquisition-minded entrepreneurship

We have a strong bench of institutions shaping future operators:

• University of Pennsylvania / Wharton Venture Lab

• Temple University Innovation & Entrepreneurship Institute

• Drexel University’s Baiada Institute and Close School of Entrepreneurship

• Villanova University’s M&A Society

Students in these programs aren’t just studying entrepreneurship—they’re getting hands-on with valuation, financials, deal structure, and operator thinking.

2. The region has a strong base of buyers and searchers

Across Greater Philadelphia, there are dozens of active searchers, independent sponsors, and small acquisition groups. Many are working quietly, looking at HVAC companies, medical practices, specialty contractors, niche manufacturers, logistics firms, and professional service companies.

The businesses that make Philly run are exactly the ones ETA buyers want.

3. Thousands of local businesses are nearing a transition

In neighborhoods from Northeast Philly to South Jersey to the Main Line to Delaware County, owners are reaching retirement age. Most want:

• A successor who will take care of their employees.

• A clean transition.

• A fair valuation.

That’s where ETA buyers come in. When the fit is right, both sides win.

How ETA Uses SBA Lending in Philly

A lot of successful ETA deals in this region use the SBA 7(a) program. A solid acquisition structure usually includes:

• A profitable business with steady historical cash flow.

• A buyer with leadership or operational experience.

• A real transition plan with the seller.

• A mix of bank financing, buyer equity, and seller financing.

Industries that make strong SBA-backed acquisitions here include:

• HVAC and home services

• Health and dental practices

• Specialty trades

• Light manufacturing

• Logistics and distribution

• Professional services

These are resilient industries with recurring demand—very Philly.

Resources and Programs in Philadelphia’s ETA Ecosystem

If you're exploring ETA in the region, here are strong points of entry:

• Venture Lab – ETA Program at Penn

• Temple Innovation & Entrepreneurship Institute

• Drexel Baiada Institute Pitch Competitions

• Villanova M&A Society

• CONNECTpreneur

Each plays a different role, but together they make Philly an emerging hub for ETA.

Why ETA Matters for Philadelphia’s Economy

Buying a business isn’t just a personal milestone for the owner. It keeps our local economy healthy. ETA helps:

• Preserve jobs

• Stabilize local industries

• Modernize long-standing companies

• Keep ownership local

• Strengthen neighborhoods

In a city like Philly, where small businesses are part of the fabric, ETA becomes a real driver of long-term economic strength.

If You’re Exploring ETA, Here’s Where to Begin

A few practical steps:

1. Look into ETA and search fund fundamentals.

2. Learn what makes an acquisition financeable.

3. Explore SBA 7(a) options for buying a business.

4. Attend local university events or pitch competitions.

5. Talk with lenders early so you don’t waste time on deals that can’t work.

Philadelphia ETA Directory 

Below is a directory that I have compiled of organizations, data sources, and institutions supporting Entrepreneurship Through Acquisition in the Philadelphia region.

Universities and Innovation Programs

• Wharton Venture Lab ETA Program – https://venturelab.upenn.edu/eta

• Temple Innovation & Entrepreneurship Institute – https://iei.fox.temple.edu

• Drexel Baiada Institute – https://www.lebow.drexel.edu/faculty-research/centers-institutes/baiada-institute/pitch-competitions

• Drexel Close School of Entrepreneurship – https://drexel.edu/close-school-of-entrepreneurship

• Villanova University M&A Society – https://www1.villanova.edu/university/business/academics/graduate-programs/msf/professional-development/student-organizations.html

Government and Economic Data Resources

• U.S. Small Business Administration (SBA) – https://www.sba.gov

• U.S. Census Bureau Business Data – https://www.census.gov/programs-surveys/business-owner.html

• Pennsylvania DCED – https://dced.pa.gov

• Philadelphia Department of Commerce – https://www.phila.gov/departments/department-of-commerce

Deal Flow, Search Fund, and M&A Marketplaces

• Axial Search Fund Directory – https://www.axial.net/forum/companies/philadelphia-search-funds

• BizBuySell Pennsylvania Listings – https://www.bizbuysell.com/pennsylvania-businesses-for-sale

• Business Valuation Resources (BVR) – https://www.bvresources.com

Entrepreneur & Investor Networks

• CONNECTpreneur – https://connectpreneur.org

• SCORE Philadelphia – https://philadelphia.score.org

• Temple SBDC – https://www.temple.edu/sbdc

• Widener SBDC – https://www.widener.edu/centers/small-business-development-center

Final Thoughts

ETA isn’t a trend in Philadelphia—it’s a natural extension of who we are. We’re a city full of operators, builders, and owners who value real businesses that do real work. The next generation of leaders is stepping up, and acquisition entrepreneurship gives them a path that makes sense.

If you’re thinking about buying a business in the Philly area or building a program to support this work, I’m always glad to connect.

Connect With Me

If you want to talk through an acquisition, learn how SBA financing fits into a deal, or just get a gut check on whether an opportunity makes sense, you can schedule time with me here. I am based in Philadelphia but I can lend nationwide:

Looking forward to connecting and supporting your ETA journey