The new path to ownership: Why Entrepreneurship Through Acquisition could be Ireland's next big opportunity

A changing picture in Ireland’s business landscape

Across Ireland, a growing number of founder-led businesses are approaching a generational handover with no clear successor in sight. The assumption that a son or daughter would take over is increasingly outdated. Many next-generation family members either lack the appetite or the capability to run the enterprise, leaving owners searching for options that protect value, preserve legacy and ensure continuity.

Bitesize summary

• A growing number of Irish founder-led businesses are approaching succession without a clear next successor, challenging traditional assumptions around family handover.
• Management buyouts are becoming less attractive as risk-averse teams and tighter financing conditions reduce appetite for leveraged deals.
• Entrepreneurship Through Acquisition (ETA) is emerging as an alternative model, enabling experienced individuals to acquire and lead established SMEs with investor backing.
• ETA can provide continuity for businesses, preserving culture, jobs and legacy while introducing a hands-on owner-operator.
• Favourable conditions, including Entrepreneur Relief and the potential for lower tax on qualifying disposals, are supporting timely ownership transitions, provided businesses are properly prepared.

Traditional MBOs are losing steam

For decades, the management buy-out (MBO) was the preferred fallback. Today, that path looks far less certain. Risk-averse management teams, shaped by the 2008 downturn and mindful of personal financial exposure, are reluctant to take on leveraged buy-outs. Financing conditions have also tightened, and higher interest rates can add further pressure to debt-laden deal structures. The result is a reduced appetite for MBOs, which in turn adds to the succession challenge.

Enter Entrepreneurship Through Acquisition (ETA)

In response, a new ownership model is gaining momentum globally, and beginning to resonate in Ireland: Entrepreneurship Through Acquisition, often called the search-fund model. Unlike starting a venture from scratch, ETA enables an experienced individual to acquire and lead an existing profitable SME. It typically involves:

• A searcher: A skilled executive seeking to buy and operate a business
• Investor backing: External funding to reduce personal risk for the buyer
• The target: Well-run SMEs, often under the radar of private equity
• The outcome: A hands-on owner-operator, delivering continuity and fresh energy rather than an anonymous financial buyer

Already well established in the US and UK, ETA may offer a practical option for an Irish market where traditional succession routes are narrowing.

Why it matters now

This demographic shift presents a significant opportunity. A well-timed sale can secure retirement, provide liquidity for family priorities, and do so under favourable tax terms. Revised Entrepreneur Relief, for example, taxes qualifying disposals at 10% on gains up to €1.5 million, which may provide a more favourable outcome than paying marginal tax rates of over 50% on salary and dividends. Crucially, ETA deals can often preserve the culture, jobs and legacy that founders value most.

What owners should consider

Business continuity through ETA is not automatic. Preparation is key: ensuring clean accounts, resolving tax issues, assessing realistic valuations and defining your role post-sale. Negotiating deal structures, earn-outs and deferred consideration benefits from experienced advice to protect long-term value.

How Crowe can help

At Crowe, we work across the full deal lifecycle. For owners considering an exit or aspiring acquirers exploring ETA, we support clients through:

• Valuation: Evidence-based, defensible valuations to anchor negotiations
• Due diligence: Financial, tax and commercial, for both buyer and seller
• Deal structuring: From completion accounts to tax efficiency
• Strategic guidance: Helping you plan early, before offers appear, to keep every option on the table

The Irish succession landscape is changing rapidly. Whether you are a founder safeguarding your life’s work or an executive considering ownership, now is a good time to consider the next stage of ownership planning

Start the conversation with us today. The right move, at the right time, can redefine your future.