Why hundreds of US MBAs are leaving high-paying jobs to clean air ducts and fix plumbing
A growing number of MBA graduates in the United States are choosing to leave traditional corporate careers to purchase and operate small, often unglamorous, businesses in sectors such as HVAC, plumbing, and car washing.
This trend is part of a model known as Entrepreneurship Through Acquisition (ETA), more commonly referred to as "search funds". It offers young professionals a pathway to business ownership without having to start from scratch.
Search funds have gained significant momentum, especially since the Covid-19 pandemic, as thousands of MBA students have increasingly opted to acquire existing businesses rather than launch new start-ups. According to Stanford research cited by
Business Insider
, from 1984 to 2019, investors deployed a total of at least $1.4 billion into search funds and the companies acquired through them.
In just the four years since, an additional $1.5 billion has been invested. Many of these MBAs are turning to industries traditionally overlooked by elite professionals, including duct cleaning, grease trap maintenance, and septic tank services.
Dan Schweber's shift from consultancy to ownership
Dan Schweber, a former healthcare consultant and startup employee, enrolled in Columbia's Executive MBA programme in search of a more autonomous and rewarding career path. After exploring multiple business ideas, he discovered Columbia's elective course on search funds. As reported by
Business Insider
, Schweber decided to pursue the ETA model, drawn to the concept of acquiring a business with existing revenue, staff, and customers.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Giá vàng đang tăng mạnh trong năm 2025 — Các nhà giao dịch thông minh đã tham gia
IC Markets
Tìm hiểu thêm
Undo
To finance his search, Schweber raised $480,000 from 18 investors, which covered a two-year period of outreach, due diligence, and personal living expenses. He estimated that he would need to send 4,800 outreach emails per year to generate 500 introductory calls, leading to 50 in-person meetings and two signed letters of intent. His first attempt to acquire a fire safety business fell through after months of negotiation.
From failed deals to
air duct cleaning
With nearly two years into his search and no acquisition completed, Schweber shifted his focus from the healthcare industry to home and commercial services. He searched for HVAC-related businesses around Washington, DC, eventually identifying Atlantic Duct Cleaning. After 11 unanswered emails, he received a response to his 12th attempt.
The owner, Tom Keys, had founded the company in 1995 and built it into a profitable enterprise generating $4 million annually.
While private equity firms had made offers, Keys preferred to sell to someone who would maintain the business's integrity and staff. Following a three-month due diligence process, Schweber secured financing from 15 of his original 18 investors, along with a loan from a private lender. The transaction was finalised on May 31, 2022, although the purchase price was not disclosed.
Business Insider
noted that the median price for companies bought by investor-backed searchers in 2022 and 2023 was $14.4 million.
High returns drive investor interest
Search funds have become attractive to investors, largely due to the historically high returns. As per data reported by
Business Insider
, searchers have delivered an average return of 4.5x on capital, with an annual internal rate of return of 35%. This compares favourably with traditional asset classes such as the S&P 500, which typically yields 10% annually. The funding model allows investors to gain preferential access to deals once the searcher acquires a business.
Challenges after acquisition
Despite the potential for high returns, 31% of searcher-led acquisitions result in losses for investors. Risks include undetected operational issues, macroeconomic downturns, or poor performance by first-time CEOs.
Business Insider
reported several cases where new owners faced financial strain, emotional stress, and the possibility of bankruptcy within the first year.
Growth and future plans
Schweber now serves as CEO of Atlantic Duct Cleaning, overseeing over 60 employees and a fleet of 30 trucks.
As reported by Business Insider, his goal is to grow the company to $25 million in annual revenue by 2028, aiming to become the largest air duct cleaning firm on the East Coast, if not in the entire country.
The rise in search funds reflects a broader shift in US business education and entrepreneurship, where owning a plumbing or duct cleaning business is now viewed as a viable—and potentially lucrative—career path for elite MBA graduates.
Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
24 minutes ago
- Time of India
Currency watch: Rupee ends 12 paise lower at 85.92 against dollar; FPI outflows continue
The rupee weakened by 12 paise to close at 85.92 against the US dollar on Monday, hit by rising global crude oil prices and a firm greenback, even as the Reserve Bank of India stepped in to limit losses. The domestic unit had ended at 85.80 per dollar on Friday. At the interbank foreign exchange market, the rupee opened at 85.96 and moved in a tight band of 85.92 to 86.05 during the day before closing at 85.92. The local unit briefly slipped past the 86 mark but recouped some ground later in the session, PTI reported. Forex traders attributed the rupee's weakness to persistent foreign fund outflows, a stronger dollar index, and lack of progress in the proposed India-US bilateral trade agreement (BTA). A fresh round of BTA talks began in Washington on Monday and will continue till Thursday. 'The Indian rupee again fell as India-US trade deal was yet to be seen, while US President Donald Trump applied tariffs on the EU and Mexico, two of its biggest trading partners. Dollar index rose and kept the rupee lower for the entire day while Asian currencies were slightly weaker,' said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like She's 75 and Retiring - Her Handcrafted Jewelry Is 80% OFF Artisan Weekly Read More Undo Brent crude futures rose 1.56% to $71.46 per barrel, exerting additional pressure on the rupee. The dollar index was up 0.03% at 97.82. Bhansali added, 'The Reserve Bank of India (RBI) was present to protect the rupee while FPIs, who were sellers of equity on Friday, were dollar buyers, keeping the rupee well bid for the whole day without any major correction. We expect the rupee to move between 85.75 and 86.25 on Tuesday as we await US CPI data.' On the domestic equity front, the BSE Sensex declined 247.01 points to 82,253.46 while the NSE Nifty shed 67.55 points to close at 25,082.30. Data from the commerce ministry showed wholesale price inflation (WPI) turned negative for the first time in 19 months, falling 0.13% in June on account of softening food and fuel prices and easing costs of manufactured products. Meanwhile, foreign institutional investors (FIIs) pulled out Rs 1,614.32 crore from Indian equities on Monday, as per exchange data. India's forex reserves declined by $3.049 billion to $699.736 billion in the week ended July 4, according to RBI data released on Friday. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
30 minutes ago
- Time of India
Foreign short-sellers trigger stock crashes in India with critical reports, and profit from them, reveals report
Proxy firm InGovern has released a report outlining the modus operandi of certain foreign short-sellers who start taking positions in target companies and make gains from the fall in their stock price once the report is released. "Foreign research outfits not registered with Sebi can publish reports on Indian companies without being subject to Indian regulatory scrutiny -- even when their actions directly impact Indian investors and markets," it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bank Owned Properties For Sale In Duong Detham (Prices May Surprise You) Foreclosed Homes | Search ads Search Now Undo The report came in the backdrop of US-based Viceroy Research calling billionaire Anil Agarwal-led British firm Vedanta Resources a "parasite" that is "systematically draining" its Indian unit, an allegation which the group called "selective misinformation and baseless" aimed at discrediting it. InGovern said short seller reports have become significant market events, often resulting in heightened volatility and intense scrutiny of targeted companies. These firms first establish a short position in the securities of a company, which is followed by publishing a critical or adverse research report. The report often triggers market reactions, sometimes bordering on panic. Short sellers benefit financially from subsequent movements in stock or bond prices. Live Events In India, the Securities and Exchange Board of India (Sebi) has established a regulatory framework for research analysts. Entities and individuals who publish research on Indian securities are required to be registered with the regulator, ensuring a degree of accountability and oversight regarding the quality and intent of published research. "These regulations are designed to protect investor interests and promote market integrity by holding registered analysts to professional and ethical standards," InGovern said. Citing recent reports against Indian groups, it said instances have emerged where offshore research firms released critical reports while holding economic interests in the securities, yet did not respond to regulatory summons or cooperate with Indian authorities. The reference was to another US short seller, Hindenburg Research, which in January 2023 released a damning report against the Adani Group. Hindenburg, which has since shut shop, did not respond to summons issued by Sebi. "Indian regulators can enforce compliance and accountability among domestic research analysts, but have limited recourse against unregulated foreign entities. This creates a regulatory gap, allowing such firms to influence Indian markets without adhering to the same standards of transparency," InGovern said. "The accuracy of these reports is often debated, but the incentive structure -- where financial gains are tied to negative market outcomes-- raises concerns about motives, with market disruption sometimes prioritised over balanced analysis." Calling for a need for stronger safeguards, it said these dynamics highlight the importance of ongoing dialogue around disclosure norms, cross-border regulatory cooperation, and enhanced investor education as global capital markets become increasingly interconnected. InGovern has said that as an independent proxy advisory firm, it has made recommendations in the past for supporting and opposing various resolutions at Vedanta Group companies, depending on the nature of the proposal and the prevailing governance standards. "Routine resolutions such as adoption of financial statements or reappointment of auditors have generally received support when disclosures and processes met regulatory and best-practice standards," it said. On the proposed demerger of Vedanta, InGovern has noted that it was supported by leading proxy advisory firms (including InGovern) all of whom recommended a vote in favour of the demerger. "These advisors cited potential benefits such as enhanced management focus, improved capital market access, and the opportunity for investors to hold shares in businesses with distinct investment profiles. The demerger is designed to unlock value, sharper strategic focus for each business, and provide flexibility for future growth and collaboration with investors and partners, including the possibility of sale of any of the demerged entities," InGovern said. On the Viceroy report's observations on entity structures, InGovern has stated that such structures are quite common and legitimate. "Infrastructure, mining, and energy businesses require large upfront investments and often operate through holding company structures for regulatory, tax, and operational reasons," it said, adding that parent companies often raise debt at the group level (sometimes at more favourable rates) and use subsidiary cash flows for servicing, which is disclosed and regulated. "This model is not unique to India -- most large conglomerates globally use similar structures, as seen with Glencore, Anglo American, and BHP," it said. InGovern has also highlighted how various regulatory norms in India require ample disclosures for companies, which helps provide information to stakeholders. "Indian regulations (SEBI, Companies Act) require comprehensive disclosure of related-party transactions, inter-corporate loans, and dividend flows." Vedanta Group had denied the claims in the Viceroy Report, stating that the report is a malicious combination of selective misinformation and baseless allegations to discredit the Group.
Time of India
41 minutes ago
- Time of India
GCCs in growth spotlight: Goldman Sachs says India will hit $10 trillion GDP in 10 years; global capability centres to add $0.5 trillion
India's Global Capability Centres (GCCs) could contribute as much as $0.5 trillion to the country's gross value added (GVA) over the next decade, as India advances toward becoming a $10 trillion economy, a top Goldman Sachs executive said on Monday. Gunjan Samdani, Co-Chairman of Goldman Sachs India, said the GCC sector is expected to directly employ 20–25 million people in the coming years, underscoring its central role in shaping the country's economic future. He was speaking at the Confederation of Indian Industry's (CII) GCC Summit, ANI reported. "Sixty-five per cent of the global growth between now and 2035 will come from emerging markets, and India is a bright spot. We will be the fastest-growing economy in the world and will become a $10 trillion economy in the next decade," Samdani said. He noted that India is well-positioned to benefit from shifting geopolitical and economic dynamics globally, including supply chain realignment, trade rebalancing and increased technology spending. The country's demographic advantage, deep STEM talent pool, and rising capabilities in artificial intelligence (AI) — backed by the national AI Mission — would help India tap these opportunities effectively, he said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like You Won't Believe the Price of These Dubai Apartments Binghatti Developers FZE Get Offer Undo 'India remains strategically positioned to capitalise on multiple global trends simultaneously,' Samdani said, adding that artificial intelligence represents the most compelling disruption opportunity in today's evolving economic landscape. According to Samdani, global technology spending is expected to surpass $4.92 trillion by 2025, driven by AI-led digital infrastructure development. India, he said, has the potential to emerge as a major hub in this transformation, with GCCs acting as key players. The role of GCCs has evolved significantly over the years — from low-cost support centres to innovation engines that drive AI, automation and digital transformation for multinational corporations. These centres, typically offshore hubs set up by MNCs to run core business functions and services, are now helping shape strategic direction and innovation agendas for their parent companies. As a result, they are emerging as major contributors not just to the Indian economy, but also to the future of global enterprise operations, industry experts said. The remarks come amid renewed government efforts to scale up the GCC ecosystem beyond India's traditional tech hubs and drive deeper integration with emerging technologies and talent across tier-2 and tier-3 cities. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
