11th Annual Booth-Kellogg ETA Conference Hosts Record Number of Attendees

Earlier this month, the Polsky Center, ETA Group at Chicago Booth, and Northwestern Kellogg Innovation and Entrepreneurship Initiative hosted the annual Entrepreneurship Through Acquisition Conference.

The eleventh iteration of the event was the largest ever hosted, with an estimated 1,000 people in attendance from 13 countries and 47 universities.

The growing crowds represent the growing interest in ETA, which Booth Dean Starr Marcello has seen firsthand since Booth began offering ETA class over a decade ago.

Chicago Booth Dean Starr Marcello opens the Conference.

“Entrepreneurship is one of the top concentrations at Booth, and ETA specifically is often called out as one of the main reasons that students come to Booth,” said Marcello, who provided opening remarks. “And it’s through great events like this – a collaboration between two leading universities – that continues to put Chicago as a city on the map for ETA.”

Empowering Women in Business

While the event hosted a record number of attendees, there was also another standout amongst the crowd – women.

“I came to this conference in 2017 and there were almost no women, so it’s great to see a whole room of women here today,” said Courtney Dunn, president of Cerbo EHR.

The Empowering Women in Business panel discussion featured four women who have gone through the search process – three of whom are currently running their businesses and one who is now on the other side as an investor — and was moderated by Catherine Littell, vice president, Halstatt Legacy Partners.

The group agreed on the evolution of diversity in ETA over time and called out how it’s in a much better position today than in years past.

“There is so much support now for women – you just need to find it,” said Elisabeth Settimi, owner of Char Crust. “Even after you make an acquisition, there are distributors who want diversity in their suppliers, so we’ve been able to benefit from being a local, women-owned brand. And I encourage all women in the field to put in the effort to find these sorts of opportunities.”

While the field has become more inclusive, each panelist experienced sexism at some point in their search. Instead of letting these situations impact their journey, they instead used it as fuel.

The Empowering Women in Business panel.

“We’ve gotten sexist responses before and at first you think ‘what can I do to convince them I’m worthy?’ The answer is we don’t,” said Adeline Epstein, investor at WSC and Company. “Why would I buy a business from a person like that? For me, it was an easy screening method – they show the type of person they are and I move on.”

The group also encouraged women to pursue careers in ETA.

“If you want autonomy, ETA is a great place for women who want to have a family and control over their personal and professional life,” said Settimi. “You’re still going to work a lot, the success of the business stops with you, but you’ll be able to have some control over when you do that.”

Navigating Setbacks in ETA

Everybody wants to succeed, and that’s no different in ETA. But the reality is that not all searches end up successful.

“This is the panel for realists,” said moderator Matt Littell, search fund entrepreneurship investor at Halstatt Legacy Partners. “Very few entrepreneurs in ETA have a path that goes straight up and to the right, which is partly why it’s fun.”

Managing those issues was the main topic in the Navigating Setbacks in ETA panel. And while any number of things could go wrong throughout the process, one theme stood out as the best way to avoid failure – communicate.

The Navigating Setbacks in ETA panel.

“Communication is the key,” said Scott Wilson, principal, Miles and Stockbridge. “There is an inherent risk to ETA, but if you can get in front of those things, call them out, and discuss how you will mitigate them, you’ll be much better off.”

Another key to navigating the challenges that come up is figuring out why you want to acquire a business in the first place.

“If the only reason you are in ETA is for the financial outcome, you’re in it for the wrong reasons,” said Ayo Phillips, investor at LP First Capital. “We all want the money, but during pre-search and acquisition, identify the things that are important in your life and make sure you are well rounded. Don’t go chasing money because you can lose yourself.”

Kevin Barton, senior vice president, director of search fund lending, BankProv, echoed those thoughts, “Don’t start a business for money, start it because you love it.”

Strategies for Success in Mastering Operations and Value Creation

You do a search, work hard, and buy a business. What’s next?

That was the focus of discussion for the Strategies for Success in Mastering Operations and Value Creation panel.

The group started by discussing how to create value in businesses that you acquire.

“When I buy a company, I think about the idea that someday I’m going to try and sell this business, and work backwards from that moment,” said Michael Aubrey, CEO of Mission Veterinary Partners. “I can anticipate the due diligence questions that I will be asked at the time of sale, and if I am able to answer those questions in a manner I can be proud of, I will have created value.”

Dan Cremons, founder, Accelera Partners, agreed with the idea of working backwards from the end.

The Strategies for Success in Mastering Operations and Value Creation panel.

“I like the idea of beginning with the end in mind. And we have to define the ‘end.’ Is it the exit? Or some longer-term vision that extends beyond your ownership period? It’s both.” said Cremons. “Someday you will be selling the business, and when you sit down with a prospective buyer, you will need to sell them on the dream — the longer-term vision. So having a clear vision will help maximize your exit value.”

The group also went through the first 100 days of owning a business – a critical period for any new business owner. It’s often tempting to come in and immediately start making changes, but that may not be the best course of action.

“I always get asked how soon you can start making changes in a business,” said Will Wright, general partner, Dunmore Capital Partners. “There’s no set rule. It takes a lot of EQ from the leader to ensure they have the support of the team to make changes. If you don’t have that support, the changes aren’t going to work.”

Aubrey takes a hands-on approach and gets input from the entire team before making any changes.

“When I buy a business I meet every single team member,” said Aubrey. “And I ask them what the company should start doing that it’s not, what the company should stop doing that it is, and what we should make sure we keep doing.”

“You’ll get tons of great ideas from these conversations,” Aubrey continued. “If you’re humble enough to listen, you’ll have a good foundation of your go forward strategic plan.”

Closing Keynote with Justin Ishbia

Justin Ishbia, founding partner, Shore Capital, provided closing remarks for the conference. Moderated by Alex Schneider, adjunct lecturer in entrepreneurship at Kellogg, the two talked through Ishbia’s journey turning Shore Capital into one of the nation’s best-performing private equity firms. Since the firm’s inception in 2009, Ishbia and the team have grown Shore from 4 employees to more than 160 with over $9 billion in Assets Under Management.

Keynote speaker Justin Ishbia

For Ishbia, one of the keys to success in the early days was ensuring their focus was in the right place.

“One thing I believe in is investing in people, not material things,” said Ishbia. “When we started, we weren’t concerned about our office space, but we did make sure we had the right people on the team.”

With a lot of students in the audience, Ishbia gave advice to those who were about to start their ETA journey.

“Something that we do, that I encourage those starting off to do as well, is make a cohort with your peers,” said Ishbia. “If you’re doing a search, start a cohort with others that are doing it as well. The process of meeting regularly and having people around you that are going through similar challenges at the same time will help you succeed. The value of doing this in the long run is immense.”

Ishbia also provided some more internal advice for the students in the audience.

“In the early days, it may be difficult, but there is no replacement for hard work,” said Ishbia. “People want the end result, but often aren’t willing to put in the effort. Break down your goals, have a long-term vision, and most important – believe in yourself.”