🎓 The Bulletin #40: MBA Graduates Embrace Entrepreneurship through Acquisition, New York's Commitment to Renewable Energy, and the Rise of Electric Aviation
In this week's bulletin, we delve into why MBA graduates are embracing entrepreneurship through acquisition, explore New York's commitment to clean energy, and soar into the world of electric aviation
Welcome to the 40th edition of The Bulletin! We truly enjoy creating these every week and hope that you enjoy consuming them just as much. :)
💰 From MBA to CEO: Exploring Entrepreneurship through Acquisition
If you were to ask an MBA candidate about their post-graduation plans, odds are their response would be one of the following: consulting, tech, entrepreneurship, or finance. However, given the unpredictability of the current job market, many have opted to forge their own path through a process coined entrepreneurship through acquisition (ETA). ⚙️ Unlike the conventional venture-backed startup model, ETA allows aspiring entrepreneurs to buy and manage existing small businesses, allowing them more autonomy and ownership over the venture.
Originating in Harvard in 1984 and shortly thereafter spreading to Stanford, ETA was not a common post-graduation plan until business schools began implementing it into their curricula.🏫 Wharton, Yale School of Management, and the University of Chicago’s Booth School of Business have added ETA courses to their MBA programs, with Wharton awarding up to 4 students $50,000 fellowships to conduct a search after graduation. 🔬
To find the perfect acquisition, ETA candidates connect with thousands of SMBs in an attempt to find the elusive ‘golden seller’ - a company that is financially promising and would benefit from their leadership and expertise. 🍯 This rigorous search can take several months to even years and requires diligence, patience, and a deep understanding of which businesses they can take over.
Candidates with access to more capital oftentimes opt to hire search funds to go through this process for them. This typically requires raising money from investors in two stages. The initial capital (generally $425,000 per person) funds the search-related expenses, including the searcher’s salary and travel costs. 🗃️ The second round funds the actual acquisition. While self-funders have more freedom in picking the SMB they want to acquire and have a higher share of equity ownership, their smaller acquisition budgets limit their scope to smaller enterprises than those backed by investors.
🌿 New York's Historic Leap into Renewable Energy
In a landmark move, New York unveils the most substantial state investment in renewable energy in U.S. history. New York Governor, Kathy Hochul, introduced an ambitious plan to underscore the state's dedication to reaching its 2030 target of 70% of electricity coming from renewable sources. ♻️
At the heart of this endeavor is a wide array of initiatives spanning wind and solar power expansion, investments in energy storage solutions, and an upgrade in the state’s grid infrastructure.⚡ This undertaking is predicted to have the following outcomes:
Three offshore wind and 22 land-based renewable energy projects will power 2.6 New York homes and deliver 12% of the state’s electricity.
Reduce gas emissions by 9.4 metric tons annually, the equivalent of taking more than 2 million cars off the road each year.
Increased public health benefits as a result of reduced exposure to pollutants.
The creation of 8,300 family-sustaining jobs.
Produce 19 million megawatt-hours of renewable energy annually, enough to power more than 2.6 million New York homes.
✈️ The Emergence of Electric Aviation
In a promising development for the future of sustainable aviation, Beta, a Vermont-based electric aircraft company, is making headlines with its groundbreaking electric plane.🛬 Just as the automotive industry found its way at the turn of the 20th century, electric aviation holds the promise of transforming the way we think about air travel and its environmental impact.
Chris Caputo, a pilot on Beta's team, embarked on a remarkable journey that took him through the East Coast. 🧳 Flying through congested airspaces over major cities like Boston, New York, and Washington, he showcased the immense potential of electric aviation before landing in Florida and handing the plane over to the Air Force.
The creation of ‘Ava’, the electric plane, has vast implications as it has the potential to significantly reduce the aviation industry’s carbon footprint and contribute to a more sustainable future. Aviation contributes about 3% of all carbon emissions worldwide, which would make it sixth in the world if it were a country. 🗺️ Though electric aircraft are only expected to compete with helicopters, cars, and trucks for a few years as cities do not have the infrastructure built for widespread flight, this marks a significant milestone.
That’s it for this week, feel free to email me at lara_gamaleldin@brown.edu with any inquiries!
✨ Follow us:
Instagram: @vanwickleventures
Twitter: @VanWickleV