Reflections from the ETA conference in Sydney (September 2025)
What struck me most was the level of energy in the room - a mix of searchers, investors, and advisors all actively engaging with this fast-growing ecosystem in Australia and New Zealand.
Below are my key takeaways from the sessions and conversations from my perspective as a debt advisor and future searcher.
1. The Role of Debt Capital in ETA
Many searchers and operators wanted to understand debt options - how much leverage is possible, how lenders assess risk in ETA-style deals and what structures are available.
This highlights the growing need for specialist debt advisors in the ETA space. I see my role as helping searchers balance equity and debt so they can retain control while still securing sustainable financing.
2. Lender Appetite
A few years ago, very few lenders in Australia were willing to seriously look at ETA deals. That's now shifting. Both commercial banks and non-bank lenders are showing more appetite, particularly for transactions where the searcher has relevant industry experience and the business has stable cashflows.
This is encouraging. It means ETA is no longer seen as a niche or "too hard" category. With more lender competition, searchers can push for terms that align with long-term success, not just short-term deal completion.
3. Advisors in the Process
A recurring theme from both legal and finance advisors was that we'd all prefer to be brought into conversations earlier in the journey. Too often, advisors are engaged when a deal is already on foot, which limits the ability to shape the outcome.
Engaging advisors early means deals can be structured for success before an LOI is signed. In my experience, waiting too long often results in compromises on funding terms or delays that could have been avoided.
4. Macro Environment & Demographics
Australia's dependency ratio is climbing sharply - from under 50% in 2010 to a projected 65%+ by 2050. With baby boomers retiring (the first turns 80 next year), we face slower income growth, weaker credit demand, and higher government fiscal strain. On top of that, 1 in 4 business owners expect to close their businesses upon retirement, rather than sell or pass them on.
This presents both a challenge and an opportunity. On the one hand, fewer people in the workforce means higher pressure on those who are working (including future operators). On the other, it underscores the urgency of succession planning. The wave of retiring business owners will fuel deal flow for the next 10 - 15 years - but only for those prepared to step in with capital and capability.
5. Retiring Business Owners & Succession
The stats around business owners retiring were eye-opening:
- 39% expect family to take over
- 25% expect to close
- 23% expect to sell
- 9% are unsure
- 5% expect partners to continue
Closures represent lost jobs, lost community value, and lost wealth creation. ETA offers a clear alternative - keeping good businesses alive under new ownership. For lenders, this makes succession-backed deals attractive: you're not just funding a business, you're helping preserve economic stability.
6. Searcher Profiles in ANZ
The typical search here takes around 17 months - shorter than the US (20) and global average (21). Preferences shared in the room included:
- Self-funded searches rather than traditional search fund models.
- Retaining full control by searching solo.
- Willingness to buy anywhere in Australia, with targets >$2.5m earnings.
- Heavy focus on direct, proprietary outreach to owners.
Self-funded searches align neatly with the growing debt appetite I mentioned earlier. By using debt alongside modest equity, searchers can retain meaningful ownership while still getting deals done. I see this becoming the dominant path in ANZ.
7. Post-Acquisition Reality
Several operators reminded the room that the "real work" begins after the acquisition. Day 1 of ownership is a fresh start, where human capital matters more than any due diligence spreadsheet. Culture, trust, and employee engagement were all cited as top priorities.
Retaining key personnel within the business is arguably more important than focusing on key customers and far more important than trying to realise immediate efficiency gains and profitability in the first 12 months.
8. AI and "AI-Proof" Businesses
Many searchers now include "AI-proof" in their investment criteria. AI investment globally is heavily US-led (USD $110bn), compared to Europe ($20bn) and China ($10bn). While early in its economic impact, disruption is clearly coming.
It's less about being "AI-proof" and more about being "AI-resilient." Every industry will be touched by AI in some way. The opportunity lies in backing businesses that adapt to it, not ignore it.
9. Interest Rates & Market Outlook
Markets expect two rate cuts in 2025, with the cash rate settling between 3.50-4.00% long-term.
Searchers shouldn't underwrite deals with the expectation that rates will fall. Structure debt so that businesses can survive at today's levels, and treat any rate cuts as upside.
10. The ETA Ecosystem
For ETA to thrive, it needs three ingredients: talent, targets, and capital. All three were present in Sydney, but scaling up will take time.
The foundation is strong. The more we bring together searchers, investors, and advisors, the faster ETA in ANZ will mature into a mainstream pathway for entrepreneurship. I look forward to playing an active role in that growth.
Final Reflection
I left Sydney feeling energised, better connected, and more confident in ETA's future here. Debt will continue to be a critical lever for searchers and operators alike and my role is to ensure it's used wisely, not excessively.
I'll definitely be back at the ETA Conference next year, and I'm excited to see how the community evolves between now and then.
In the meantime, if you've gotten this far, thank you. If you're curious about debt finance in acquisitions or want to compare notes on the search process, let's connect. Our complete 2026 guide to financing a business acquisition in Australia covers loan types, deposit requirements, lender assessment criteria, and typical deal timelines. You can also read how we approach business acquisition finance end to end. If you're weighing up the searcher path itself, our ETA finance in Australia page covers how lenders treat self-funded searchers, search funds and other buyer models.
Frequently asked questions
ETA is the pathway of acquiring an established business and stepping in to operate it, rather than building a company from scratch. The buyer, often called a searcher, funds the purchase through a combination of their own equity, bank or private debt, and in some cases backing from investors. In Australia it remains an emerging route to business ownership, though the community of searchers, investors and advisors is growing steadily.
Searchers should not assume rates will fall. A deal should be underwritten so the business can comfortably service its debt at today's rates, and any future rate cuts then become upside. Structuring for resilience at current levels is one of the clearest ways to protect an acquisition from an interest rate cycle you cannot control.
As early as possible, ideally before the deal is firmly on foot. Advisors are often engaged only once a transaction is well advanced, which limits how much the funding structure can shape the outcome. Bringing a broker in early means the debt can be arranged around the deal, rather than the deal being forced to fit whatever finance is available at the last minute.
Working on an acquisition yourself?
If you're in the ETA world and thinking through your deal, we're happy to have a real conversation about where you're at and what the debt picture looks like for your situation. No sales pitch, just straight answers.