MBA → Investment Banking → Entrepreneurship Through Acquisition in Latin America. Does this plan make sense?

Your plan has a solid foundation and aligns well with the skills and experiences needed for Entrepreneurship Through Acquisition (ETA). Here's a breakdown based on the most helpful WSO content:

1. Does IB make sense as preparation for Entrepreneurship Through Acquisition?

Yes, Investment Banking (IB) is an excellent stepping stone for ETA, especially given your goals. Here's why: - M&A and Deal Structuring: IB provides hands-on experience in mergers and acquisitions, which is directly applicable to sourcing, evaluating, and executing acquisitions for ETA. - Financial and Valuation Skills: You'll develop expertise in financial modeling, valuation, and due diligence—critical skills for identifying and assessing acquisition targets. - Network Building: IB connects you with investors, private equity professionals, and other key players who could later support your ETA journey. - Work Ethic and Discipline: The demanding nature of IB builds resilience and sharpens your ability to handle high-pressure situations, which is invaluable when running and scaling businesses.

2. Has anyone done ETA in Latin America and can share experience?

While specific examples from WSO threads are limited, there are some key considerations for ETA in Latin America: - Market Dynamics: Small businesses in Latin America are often less institutionalized, presenting opportunities to acquire at lower multiples and add value through professionalization. - Challenges: Be prepared for unique challenges such as regulatory hurdles, cultural differences, and less transparent financial reporting. Perseverance and adaptability are crucial. - Financing: Leveraging U.S.-based financing options (e.g., SBA loans or U.S. investors) can be a strategic advantage, especially if local capital markets are less developed. - Emotional Attachment of Sellers: Many small businesses in Latin America are family-owned, and owners may have strong emotional ties to their businesses. Building trust and understanding their motivations will be key to successful acquisitions.

3. If your long-term goal was to buy and run companies, would you still do an MBA + IB?

Yes, your plan to pursue an MBA followed by IB is logical and well-aligned with your goals. Here's why: - MBA Benefits: A top MBA program will expand your network, provide access to IB recruiting, and offer exposure to entrepreneurial case studies (e.g., search funds). It also enhances your credibility with investors and sellers. - IB as a Launchpad: The skills and network you gain in IB will position you well for ETA. While some might argue for skipping IB and going straight into ETA, the structured training and connections from IB can significantly de-risk your transition into entrepreneurship.

Additional Tips:

• Search Fund Model: Consider exploring the search fund model, which is popular among MBA graduates pursuing ETA. It provides a structured approach to raising capital and acquiring businesses.
• Family Business as a Platform: Using your family business as a holding company is a smart move, as it gives you an existing operational base and credibility in the market.
• Focus on Industry Expertise: Given your family business background in CPG, agriculture, and wellness, targeting acquisitions in these sectors could give you a competitive edge.

Your plan is ambitious but well thought out. With the right execution, it has the potential to succeed. Best of luck!

Sources: Q&A: I’ve held Pre-MBA MM LBO, Growth Equity and Venture Capital investment roles for funds with $500M+ AUM to $5B+ AUM, Leaving Banking for Entrepreneurship (Specifically Search Funds), Breakdown of Post-IB Exit Opportunities, Thoughts on Starting Investment Bank/M&A Advisory for my Company, LatAm DCM Exit Opps ?