Search Fund & ETA Acquisitions in CEE: Where Searchers Find Off-Market Targets

Search funds and ETA operators are a growing buyer type in CEE. One entrepreneur seeks one good company to take over and run. The region offers exactly such owner-run targets. Here's how it works.

1. What a search fund / ETA is

ETA (Entrepreneurship Through Acquisition) is a model where an entrepreneur (often with an MBA and operational experience) raises investor capital, finds and acquires one established company, then runs and grows it. A search fund is the capital structure that funds this search.

2. Why CEE suits ETA

CEE has many owner-run, profitable SMEs approaching succession — an ideal ETA target. Valuations are more reasonable than in the West, and competition for lower-mid-market targets is lower.

3. Where searchers find targets

The best targets aren't listed. Searchers use local intermediaries, networks and curated deal-flow platforms that match their mandate to suitable companies — more effective than cold outreach in an unfamiliar market and language.

4. What makes a good ETA target

• Stable, recurring revenue
• Moderate owner-dependency (takeover-able)
• Clear growth potential
• An owner ready for a smooth handover

FAQ

What is a search fund?

A capital structure that lets an entrepreneur fund the search for and acquisition of one established company, to run and grow it (the ETA model).

Why is CEE attractive to search funds?

Because of the many owner-run, profitable SMEs approaching succession, reasonable valuations, and lower competition in the lower mid-market.