This recap blog was written by Richard Chance of SBDC + TCC & Lisa Ward, MBA, CFP®, members of the Greater Arlington Chamber of Commerce, as part of our Business Resource Sessions.
Acquisitions & Exit Strategies
Build Generational Wealth Through Business Acquisitions
While the startup failure rate remains alarmingly high—over 70% fail within 5 years—there’s a more strategic path to business ownership: Entrepreneurship Through Acquisition (ETA). Richard Chance of Tarrant County College shared how entrepreneurs can sidestep many risks of startups by acquiring established, profitable businesses, particularly those owned by retiring Baby Boomers.
With 10,000 Baby Boomers retiring daily—many owning profitable businesses without a succession plan—there’s an unprecedented $14 trillion opportunity in small business transfers. These businesses employ over 25 million people and are ripe for acquisition by a new generation of owners.
The presentation introduced the “Buy & Build” strategy, the core of private equity success. This model involves acquiring a single platform company and growing it rapidly by purchasing smaller add-on businesses using outside capital. Once integrated, the larger business often commands a much higher profit (EBITDA) multiple—unlocking substantial returns through what’s known as “multiple arbitrage.”
A case study demonstrated how a platform company acquired several smaller firms at 3x profits to create one larger company that sold for 9x profits in just under three years.
By leveraging smart deal structures, outside financing, and a clear roll-up strategy, business buyers can generate transformational wealth.
This is not just theory, it’s a proven formula for wealth creation. TCCD’s Acquisition Accelerator equips aspiring entrepreneurs with the tools to enter the M&A space with confidence and capability.
Richard Chance
Dean, Lifestyle & Community Learning
Small Business Development Center
Corporate Solutions & Economic Development
Tarrant County College Trinity River Campus | Office: TRTR 3417
300 Trinity Campus Circle| Fort Worth, TX 76102
Phone: 817-515-1203 | Fax: 817-515-0704
richard.chance@tccd.edu |
www.tccd.edu
How to Safely and Strategically Exit Your Business
Thinking of selling your business or ready to buy one and grow? Our recent Business Resource Session delivered expert strategies on valuing a business, negotiating smart deals, and planning smooth transitions. We explored real-world case studies that proved no acquisition is ever the same. Succession planning is critical knowing your business’s worth puts you in control when the right offer comes. We also emphasized the importance of diversifying your wealth beyond your business. Work with a financial planner now don’t wait for a health event to dictate your retirement. Have a plan, build with purpose, and take charge of your financial future.
Lisa Ward, MBA, CFP®
