A growing number of business school graduates in the United States are pursuing an unconventional career strategy: acquiring established companies and taking on leadership roles immediately after completing their MBA programs. Rather than joining large corporations or launching startups, these young entrepreneurs are securing investment to purchase existing businesses and position themselves as chief executives.
Ania Aliev, a Tuck School of Business graduate, exemplifies this trend. While pregnant in late 2023, she finalized a deal to acquire Life Support Systems, a Massachusetts-based medical equipment company. At age 27, she became the owner and CEO just three months after giving birth. Her experience demonstrates both the opportunities and challenges of this approach. Initially concerned about how employees would perceive her age and background in finance, Aliev adopted a cautious strategy of observation and learning before implementing changes. More than two years into her tenure, she has overseen the acquisition of a competitor and doubled the company’s size, though some employees have departed due to resistance to the growth-oriented direction.
This investment strategy, known as entrepreneurship by acquisition or search-fund investing, has expanded significantly. According to 2023 data, a record 94 search funds were launched that year in the United States, with $682 million invested across funds and their acquired companies during 2022 and 2023. Specialized investment firms now back young entrepreneurs pursuing this model, attracted by historically strong returns. Research from Yale School of Management indicates these ventures generally deliver substantial profits while remaining relatively stable.
However, the approach carries substantial risks. Scott Duncan, a Harvard Business School graduate who acquired F&M Tool and Die in Massachusetts in 2018 at age 31, experienced significant difficulties. Employees with decades of experience proved resistant to change, and skilled workers departed, including one who started a competing firm. Duncan faced compounding challenges including the pandemic, Chinese competition, and facility damage. After a seven-year struggle, he shut down the business in 2025 and filed for personal bankruptcy, describing the experience as death by incremental failures.
Despite these contrasting outcomes, the practice continues to attract both young entrepreneurs and investors seeking ownership opportunities and financial returns.
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