Stories

Wed, 02 Sep 2026

Wed, 02 Sep 2026 Why wait? Business grads buying firms to install themselves as CEO

Impatient to be the boss of an established company they are borrowing money to fund their purchases.

* She used $682m in funding to acquire Life Support Systems in Massachusetts, and has since doubled the company's size through acquisitions.
* The practice of buying an established company is known as "entrepreneurship by acquisition" or "search-fund investing," where young entrepreneurs raise funds to buy companies and become their CEOs.
* Over 94 search funds were launched in the US in 2023, with a total investment of $682m.
* A report by Yale School of Management found that search funds can offer high rates of return, but also carries significant risks.
* Scott Duncan, a Harvard MBA graduate, attempted to buy a company through search-fund investing, but ultimately had to shut it down due to financial difficulties and personal bankruptcy.
* Leadership coach Jacqueline Ackerman says that workforces generally don't object to young people taking over because of their age, but rather because of uncertainty and change.