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Business Succession in Germany: Key Figures, Facts, and Pathways at a Glance

Over 200,000 companies are currently seeking a successor. What is behind this market, how large is it really, and what are the pathways to business succession? All important facts summarized.

9 min reading time

Germany faces a silent structural challenge: tens of thousands of companies change ownership every year—or disappear because no successor is found. The market for business succession is one of the largest and least transparent markets in the German economy.

This article provides a comprehensive overview: What is business succession, how large is the market really, which figures are relevant—and what paths lead to a succession?

What Does Business Succession Mean?

Business succession refers to the process by which an existing company is taken over by a new owner. This can happen in various ways:

Family Succession – the company is passed on to a family member, usually a child of the owner. Historically, this has been the most common path but is becoming less frequent: fewer children want or are able to take over the parental business.

Management Buy-out (MBO) – a senior employee or the existing management takes over the company. Advantage: maximum knowledge of the business. Disadvantage: the equity capital of long-term employees is often limited.

Management Buy-in (MBI) – an external person, often with leadership experience from another industry or the same sector, takes over the company. This is the fastest-growing path—because the pool of external candidates is significantly larger than family or staff.

Sale to a Strategic Investor or Private Equity – relevant for larger transactions. For small and medium-sized enterprises (under 1 million euros in revenue), this is rarely applicable.

The Market: Figures and Scale

How Many Companies Are Looking for a Successor?

The Institute for SME Research Bonn (IfM) estimates that between 2026 and 2030, around 35,000 companies annually in Germany will require a succession arrangement. This may sound like a manageable number—but it is not, considering that a significant portion of these do not find a solution.

According to the DIHK Business Succession Report 2025, in the market for small and medium-sized enterprises across many industries, there are more sellers than buyers—meaning buyers structurally hold the stronger negotiating position.

Which Industries Are Most Affected?

The DIHK Report 2025 shows the ratio of supply (companies for sale) to demand (interested buyers) by industry:

IndustrySupply-Demand Ratio
Hospitality / Retail3:1 (strong buyer’s market)
Service Providers2:1
IT Sector1.9:1
Industry / Craft Trades~1:1 to 1.5:1

Especially in hospitality and retail, the number of sellers significantly exceeds the number of interested buyers. In the IT sector, the ratio is more balanced—there are still relatively many interested parties.

What Does a Company Cost?

KfW data shows that the median purchase price in the German SME succession market is around 375,000 euros, with an average of about 499,000 euros (2025). The wide range spans from small craft businesses or retail shops under 100,000 euros to mechanical engineering companies or IT service providers with purchase prices in the multi-million euro range.

Why Do So Many Successions Fail?

According to DIHK, successions mainly fail for three reasons:

  1. No suitable successor found – the most common problem, especially in rural areas
  2. Mismatch between price expectations and financing feasibility – owners often overestimate their company’s value
  3. Too late planning – many owners start the search only when it becomes urgent, which severely limits their options

7 Things Everyone Should Know About Business Succession in Germany

1. The Market Is Structurally a Buyer’s Market

In most industries, there are more sellers than qualified buyers. This gives prospective buyers a negotiating position they rarely use—because many don’t realize they are operating in a buyer’s market.

2. Many Companies Are Never Publicly Listed

A significant portion of successions happens discreetly. Owners do not want employees or customers to learn about a possible sale before a concrete buyer is secured. This means that those searching only on public exchanges see only part of the market.

3. Financing Is Often Better Than Expected

Banks prefer financing business acquisitions over startups because an existing company can demonstrate historical cash flows. Government programs—especially the KfW start-up loan and guarantee banks—complement financing. An equity share of 15 to 20 percent of the purchase price is sufficient in many cases.

4. The Process Takes Longer Than Expected

From the first serious contact to closing, a business acquisition typically takes 6 to 12 months. Those who don’t factor this in come under pressure—and bad deals almost always happen under time constraints.

5. The Price Is Negotiable—and Often Not the Most Important Factor

For many owners, the continuity of the business is more important than the maximum sale price. A seller who cares about their employees and customers will often prefer a trustworthy candidate with a slightly lower offer over a pure financial investor.

6. Due Diligence Is Essential

Buying a company without thorough examination of finances, contracts, and liabilities is risky. Hidden turnaround cases—companies that appear profitable on paper but have structural problems—exist. Careful due diligence with a tax advisor and a lawyer is not an optional expense.

7. Succession Outperforms Startups in Survival Rates

The IfM Bonn has shown that only 38.1 percent of startups remain active after five years. Business acquisitions have a structurally better starting position: the business model is already proven, customers exist, and the critical startup phase is over. This structural risk profile is systematically underestimated.

The Four Paths to Succession

Path 1: Searching via Succession Exchanges

The most public method. Platforms like nexxt-change (government-run, free), the German Entrepreneurs Exchange DUB, or Viaductus (meta-search across 70+ sources) aggregate listings and enable structured searches by industry, region, and price range. The downside: many attractive companies are never listed there.

Path 2: Through Chambers of Commerce and Craft Chambers

Regional chambers operate their own succession exchanges and actively mediate. Those registered there are proactively contacted when suitable offers arise. Particularly relevant for regional searches and craft businesses.

Path 3: Through M&A Advisors and Brokers

Specialized advisors accompany the transaction on both sides and often have access to companies not publicly listed. Costs are usually success-based—typically 3 to 8 percent of the purchase price.

Path 4: Direct Approach

The most effective but also the most labor-intensive method. Those with a clear industry idea and knowledge of the region can directly approach companies before they come to market. This requires research and a convincing buyer profile but enables deals at fair terms without bidding competition.

Who Is Business Succession the Right Path For?

Succession is not for everyone. But there are clear profiles for whom it structurally fits better than a startup:

Experienced professionals with industry background – those who have worked twelve years in an industry understand the businesses better than any outsider. This significantly reduces transition risk.

Executives with commercial experience – management buy-in candidates who have led teams, managed budgets, and controlled processes bring exactly what many owner-managed businesses need in the second generation.

Academics seeking a fresh start – given the record academic unemployment of 335,000 persons (2025), succession offers a structured entry into self-employment without the risks of a startup.

Master craftsmen – the succession gap is particularly large in crafts. Qualified masters currently find takeover offers that are historically unique.

Conclusion: A Market with Significant Potential—and Significant Opacity

The market for business succession in Germany is large, structurally favorable for buyers—and at the same time opaque. Offers are spread across dozens of platforms, chambers, and brokers. Many transactions happen discreetly, never becoming public.

Anyone seriously considering succession needs a structured search approach, time for preparation—and the knowledge that they are operating in a buyer’s market.

Further Articles on Viaductus

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About the author

Christopher Heckel profile picture

Christopher Heckel

Co-Founder & CTO

Christopher has led the digital transformation of financial solutions for SMEs as CTO of SME financier Creditshelf. viaductus was founded with the goal of helping people achieve their financial goals with technology for corporate acquisitions and sales.

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