Feedback on my path to ETA –ID'ing critical skills (MBB+startup background)

investor profile

March 29, 2021

by an investor from Virginia Polytechnic Institute and State University (Virginia Tech) in Dallas, TX, USA

As a long time lurker of this forum, I am trying to understand how best I can position myself to move into ETA as a full-time owner / operator. Hoping some of you might be able to guide me on this journey and my next steps. Understand the decision on "when" to move into ETA is highly subjective, but hoping your experiences can offer me new perspectives to consider to successfully make this decision.

The ask: specifically, I would greatly appreciate any feedback re: potential roles / experiences I may want to consider toward improving my background for a future ETA. Sharing the following context on my background and current thought process.

Breaking this down into 3 sections: 1. My ETA goals 2. Current background + estimated ETA skill gaps 3. Potential roles I have considered to close said gaps

1.ETA goals: Overall, my search / ETA goal is to own and operate a business doing $3-15M+ in revenue (EBITDA $750k-$2M/TBD?). Industry foci TBD- very interested in service based companies that are ripe for basic technology integration/improvements, operational restructuring opportunities, and consolidation (much of this I've done at MBB). Leaning toward self-funding a search then using debt+equity (also considering SBA) to acquire. All current hypothesis, subject to change.

2.Current background & estimated ETA skill gaps: I believe I have many of the foundational components of search/ETA (basic finance, strategy, entrepreneurial, deal, etc. experiences); however, trying to understand what roles/experiences I should now pursue in order to continue building on these foundational components. In particular, concerned about what level of deeper finance skills are required. I have some light ETA experiences in the SaaS space (small deals, see below) which has allowed me to dip my toes in and better gauge ETA skill gaps (fortunately, personally very familiar with SaaS / web deal sourcing / origination and the sheer volume of deals req'd to close a single acquisition). Engineer by degree + MBB consultant.

List of experiences + skill gaps:

  1. Potential roles I have considered to close said gaps:
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commentor profile
Reply by a searcher
from University of California, Berkeley in Bend, OR, USA
I'm sure you'll get a lot of advice here shortly, but my advice would be to just go for it. It looks like you have a strong resume and a lot of experience. Sure, you can find holes everywhere and try to mitigate them with more experience but at first glance I'd say you have plenty to be successful today. My only recommendation would be to do an internship with an active searcher or operator. You can learn a lot that way, and you can work with them on hours/projects that make sense for you. Best of luck!
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Reply by a searcher
from University of Pennsylvania in Miami, FL, USA
Agree with James. You are overthinking it.....most traditional searchers have limited/no operating experience and, by extension, massive skills gap. In fact, we all have some shortcomings. The opportunity is to use your skills to minimize risk while putting yourself in a position through acquisition to grow and learn.
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