Entrepreneurship through acquisition in the digital age: exploring website ownership patterns and motivations for selling

Alexander Hoffmann, Dominik K. Kanbach and Sascha Kraus

Journal of Enterprising Communities: People and Places in the Global Economy, 2025, vol. 19, issue 2, 410-429

Abstract: Purpose - This study aims to explore the potential of entrepreneurship through acquisition (ETA) in the underexplored sector of small and medium-sized web-based businesses, addressing the succession crisis in industrialized nations and offering insights into the digital ETA landscape. Design/methodology/approach - The research uses a qualitative approach, conducting in-depth interviews with 19 established website owners from diverse backgrounds and industries. The study investigates their business models, selling motivations and characteristics to provide insights for potential buyers in the digital ETA space. Findings - Web-based small and medium-sized enterprises (SMEs) present unique opportunities for ETA, characterized by lower initial investment, higher scalability and diverse revenue streams. Key considerations for buyers include understanding seller motivations, evaluating niche focus and assessing the impact of emerging technologies such as artificial intelligence on content creation and search engine optimization. The findings also highlight the importance of authenticity and user engagement in maintaining website value. Practical implications - The findings offer valuable insights for entrepreneurs considering ETA in the digital space, highlighting critical factors for success, potential risks and mitigation strategies in acquiring web-based businesses. Originality/value - This paper bridges a significant gap in ETA literature by focusing on web-based SMEs, which have previously been overlooked despite their growing importance in the digital economy. It provides a comprehensive analysis of relevant factors when evaluating web-based businesses in the context of ETA, particularly in light of technological advancements and changing online landscapes.

Keywords: Entrepreneurship through acquisition; Buy-ins; Entrepreneurial finance; Search funds; Website ownership; Digital entrepreneurship; Succession; Online business models (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jecpps:jec-08-2024-0144

DOI: 10.1108/JEC-08-2024-0144

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