Is ETA the 2025 equivalent of dropshipping?

January 12, 2026

by a searcher from The University of Chicago - Booth School of Business in Chicago, IL, USA

Genuine question for the community: Are we seeing ETA turn into another "guru-ified" get-rich-quick scheme? The pattern looks pretty similar: - Flood of newcomers chasing returns without understanding operations - Brokers pushing overpriced deals to eager buyers with SBA letters - Podcasts and courses promising financial freedom through small business acquisition - "Advisors" and service providers with 18 months of experience suddenly positioning themselves as experts - People convincing themselves that zero-barrier-to-entry businesses (landscaping, pool cleaning, pressure washing) are "great deals" despite lacking any defensible moat, recurring revenue, or competitive advantages that would be table stakes in traditional search - LinkedIn full of "I closed my first deal" humble brags I'm NOT saying traditional search or self-funded deals lack merit since plenty of searchers especially from before the last year or two are doing hard work and creating value. But the signal-to-noise ratio seems to be deteriorating fast. Are we headed for a reckoning when the easy money dries up and reality hits? Or am I just being cynical about the influx of new entrants? Curious what the veterans think.

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Great question. I will be the first one to try and continue the discussion, possibly at my own peril as I do not want to anger anyone on this platform. I think there are plenty of very qualified individuals and plenty of qualified businesses out there for ETA to continue to be a robust market going forward. There is always demand for new operators and the baby-boomers are continuing to age out. However, there does appear to be a lot more noise than there was several years ago and a lot more service providers for all aspects of the process. There are some very good newer service providers who have shown up and are filling a much needed niche of helping buyers analyze and close deals. However, I have seen some that I am not as sure have the knowledge base. If you do not mind, I can use my industry as an example. The number of new "loan brokers" I have seen show up in the last year is crazy. The question is how many of them really have experience in lending. I have been in commercial lending for roughly 30 years with a strong credit background in traditional banking, and our firm has been around for 16 years, and we are constantly having to adjust as the market changes. I question if many of the new entrants have the experience to really sustain and help their clients in this market. There is hiring someone to just shop a loan for you, and there is hiring an expert that can help you manage the process and guide you on the front end and help you figure out what a good deal is and that knows how to solve problems when they arise to get to a closing. My part of the industry has definitely become inundated, and I am not convinced they all have the experience they should have. I am also seeing a lot of deals coming our way that do not make much sense. I see many businesses that are really lifestyle businesses with EBITDA of a few $100,000 being listed for 3.5 to 5x multiples. The multiples just are not justified. Then when you look at the EBITDA adjustments, they are often items lenders will not accept or are not verifiable. Or there are items the broker has not taken into account like future CAPEX needs and buyer salary, and once those are removed the adjusted EBITDA drops down well below any sort of reasonable level. Sometimes I question how these businesses even got listed in the first place. A lot of this I believe stems from inexperience or desperation to find and make deals happen. I guess all of this is to say, I think you are correct. There are a lot of newcomers and some are looking to get rich without fully understanding the market. However, I will tell you there is still a very legitimate market here as well and many qualified buyers, brokers, consultants, etc. I think the key is finding the right experienced partners and for buyers to focus on finding deals that make sense.

Reply by a searcher
from Thomas A. Edison State College in Tampa, Florida, USA

I think that there are always deals to be had. That is definitely true in real estate, in any market or cycle. BUT...I think the ETA market is maturing the way real estate is maturing. The 1% rule (buying a rental property where the monthly rent equals 1% of the purchase price) has all but disappeared, in even the most middle-of-nowhere low income places. Five years ago, you could still find single family homes in small towns or smaller cities that fit the 1% or even 2% rule. Now, that is nearly impossible in even those areas. I think the same is true with ETA, especially some industries like HVAC and plumbing. I think there are a number of people who will just get wiped out (even private equity funds, lol), when they pay way to high multiples for HVAC companies without really understanding them. As someone with a background in blue collar work, at times I resent the hubris with which people with a finance degree think they can swoop in and buy a trades business when they don't even know the difference between a crescent wrench and channel locks. But many of them succeed over time. I also think that there is a big difference between buying much smaller business (like sub $200k SDE) and a larger business. I have operated a small motel before and my experience is...if someone calls out, you are cleaning toilets or making beds. I have a hard time seeing someone without any experience in a trade buying a company with sub $200k SDE and a handful of employees making that work. However, it seems that all the hype doesn't always acknowledge the difference between a $500k business and a $5 million business. Everyone always wants to get rich quick and without a lot of work. Everyone wants to hear that you can flip a house without picking up a hammer. I have not found that to be true. Hard work leads to profit, but rushing into something without realistic expectations or a solid work ethic will lead to poverty.

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