Key Takeaways from the 6th Student-Led ETA Conference at LBS

1. Traditional vs. Self-funded Search - Traditional Search Funds allow investors to assess and build trust with the searcher during the search phase, offering institutional credibility when negotiating with sellers. - Self-Funded Searchers have more flexibility to pursue non-standard deals and structure their own cap table, but face challenges in building investor credibility and accessing capital. - Self-funded deals tend to target smaller businesses that are within reach financially but may not appeal to SF institutional investors. - There is no "better" model — each strategy has its own risks, benefits, and suitability depending on the entrepreneur’s goals, risk appetite, and access to capital. 2. Contrasting Market Opportunities in Emerging vs Established European ETA Markets - Three key dimensions define market attractiveness: PE/VC penetration, size of the economy, and ETA community maturity. - In mature markets, there is a larger investor base, but also, higher competition. - Emerging markets may offer lower competition but have a smaller investor base and less developed ecosystems (potentially in both M&A and ETA). - Local investors play a key role in emerging economies, acting as mentors and enhancing searcher credibility. - Change management and cultural shifts to a growth mindset are universal challenges across SMEs. - Exit strategy tip: Identify big players in the region, understand their M&A activity, and align your company development accordingly to make it an attractive target. 3. Unlocking the Power of Tech in ETA – From Search to Success - During the search phase, tech should be used as an enabler for deeper human interactions. Automate back-office activities (CRM, reporting) never front-office. - When assessing a company, technology can play two different roles, as the core of the business, or as an enabler of the business. Both require different reviews and due diligence process. - Once you are running your company, evaluate the company’s culture and maturity towards technology. Successful integrations require gradual implementation and aligned incentives to ensure its adoption. - Simple tech optimizations can significantly improve SME efficiency without overcomplicating operations. - Ultimately, technology is a small part of the value creation puzzle - people, processes, and culture matter most. 4. Unlocking Operational Excellence – Insights from the C-Suite - Spend time on the ground: Listen to employees, meet clients, and understand daily operations. - Eliminate any toxicity: Do not hesitate to remove employees who don’t fit the company culture. The right team is crucial to unlocking growth potential. - Keep Learning: CEOs must keep developing themselves to lead the business. Embrace learning your industry, tactical marketing, and product management. - Master crisis management: Analize, Prioritize, Communicate, and Lead. - Keep everyone aligned: It’s essential to align operational strategies with board and investor expectations. Don’t surprise your board. - You are a searcher: the skills developed during the search phase will be essential when growing the company, particularly in executing future M&A. 5. Key Levers to Becoming a Successful CEO - Avoid the temptation to make immediate changes — spend your first year learning the business, industry, and customers. - Four key actions in your first 100 days: Take control of the company’s finances, Talk to every employee, Identify toxic elements in the team and act decisively, Find and celebrate early wins to build momentum and trust. - Develop a strategic plan; define 3-year objectives (OKRs) and then work backwards to create a 1-year plan and break it down quarterly. - Value creation is not growing EBITDA, but focusing on cash flow generation, smart asset allocation, and responsible leverage for growth.