While the investment activities of business angels are primarily associated with startups, they also invest to a notable extent in the entrepreneurial acquisition variant of company formation ("Entrepreneurship-through-acquisition" or ETA). The findings of the authors' study on angel investing suggest that the more knowledge angels possess about the various forms of ETA, the more inclined they are to invest in such transactions. Overall, the insights indicate that business angels represent a financing potential for business succession in the German SME sector.
Policy Brief "Unternehmertum im Fokus" | 2024 The potential of angel investing in Entrepreneurship-Through-Acquisition
Pöschl, A.; Mai, I. (2024): Potenzial und Neigung von Business Angels zu Investitionen in Entreprenership-through-acquisition, in:Förderkreis Gründungsforschung e.V. und IfM Bonn: Policy Brief 2/24, Bonn.