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Business Succession: The Underestimated Way Out of Unemployment

3.07 million unemployed in Germany, while over 200,000 companies are urgently seeking a successor. Why taking over an existing business is a more realistic path to self-employment for many unemployed people than starting a new business – and how to succeed in making the transition.

10 min reading time

In February 2026, approximately 3.07 million people were registered as unemployed in Germany—more than at any point in the past decade. The Federal Employment Agency does not expect any significant recovery throughout the year. The labor market remains sluggish, with job openings at a historically low level.

At the same time, over 200,000 companies in Germany are desperately seeking successors. Owners who have built their businesses and want to retire—but cannot find anyone to take over. According to estimates by the Central Association of German Crafts, nearly a quarter of the affected businesses face closure if no successor is found.

These two figures rarely appear side by side. They should much more often.

Two Problems, One Solution

When unemployed, people initially think of job applications. That is understandable—but in a market that has been structurally changing for years, applications are becoming increasingly disappointing for many. The jobs that once existed no longer arise in the same numbers. Industries shrink, companies automate, and adaptation requirements increase faster than ever before.

Business succession is hardly discussed in this context. Yet it offers something the labor market currently cannot: a secure starting point for self-employment with an existing customer base, trained employees, and a proven business model.

This is not an easy path. But it is a viable one.

What Sets an Acquisition Apart from a Startup

Most people considering self-employment first think of starting a new business. Building something new, realizing their own idea. This is a legitimate impulse—but it systematically underestimates the risk.

The Institute for SME Research Bonn (IfM) analyzed the survival rate of startups: Five years after their founding, only 38.1 percent of companies established in 2016 were still active in the market. More than six out of ten startups fail within five years.

An acquisition starts from a fundamentally different position:

The business model has already proven itself. The company has been operating profitably for years—this is not speculation but verifiable history. Customers pay reliably. Employees are trained and know the processes. Banks can assess whether the company can bear debt based on historical cash flows.

From the first day after closing, revenue flows. There is no dry spell as with a startup.

This makes acquisitions particularly attractive for unemployed individuals—because those without sufficient financial reserves to wait years for break-even need a solution that works faster.

Who an Acquisition Is Realistic For

Not every unemployed person is in the same starting position. But there are some scenarios where an acquisition fits particularly well:

Experienced professionals with industry knowledge. Those who have worked ten or fifteen years in an industry and know exactly how businesses operate there have a natural advantage when taking over a company in that sector. An electrician who lost their job because their employer closed the department brings everything a small electrical business needs—expertise, customer communication, processes. If they take over a company whose owner is retiring, two gaps are closed simultaneously.

Managers with commercial experience. Those who have led teams, managed budgets, and controlled processes in their careers bring skills directly applicable in owner-managed SMEs. Especially small and medium-sized companies led by technically skilled but commercially intuitive owners often benefit significantly from structured leadership.

People with craft training. The succession gap is particularly large in the trades. The Central Association of German Crafts estimates that at least 125,000 family businesses will seek successors in the next five years alone. Qualified journeymen or masters who have lost their employee jobs find takeover opportunities here that were hardly imaginable before.

Financing: How to Buy a Business While Unemployed

The most common question when the topic of acquisition arises is about money. Businesses cost money—that’s true. But they cost calculable money, and the government and banks specifically support financing.

The Startup Grant: An Underestimated Tool

Those receiving Unemployment Benefit I (ALG I) with at least 150 days of entitlement remaining can apply for a startup grant at the job center. The funding consists of two phases:

In the first phase (six months), recipients receive their previous ALG I amount plus an additional 300permonth.Inthesecondphase(optional,anotherninemonths),itis300 per month. In the second phase (optional, another nine months), it is 300 per month. These are not huge sums—but they cover ongoing living expenses during the critical initial phase and allow full focus on the acquisition.

Important: The startup grant also applies to business acquisitions, not just startups. The application should be submitted early and before closing. It is advisable to involve a tax advisor or business consultant, as the application process can be complex.

KfW Funding Programs

In recent years, KfW has significantly expanded its funding programs for startups. The ERP Start-up Loan (ERP-Gründerkredit-StartGeld) was increased to up to $200,000 at the end of 2025 and covers 80 percent of the credit risk for the house bank—making lending much more attractive for banks, even if the applicant’s equity base is limited.

For larger transactions, there is the ERP Start-up Loan Universal (ERP-Gründerkredit-Universell) with up to $500,000.

Guarantee Banks

The guarantee banks of the federal states provide default guarantees of up to 80 percent of the loan amount. This is especially relevant for people who cannot provide sufficient equity as collateral—for example, because they do not own real estate or have limited savings.

Seller Financing

Many business sellers are willing to finance part of the purchase price themselves—typically 10 to 30 percent—by providing a loan to the buyer. This significantly reduces the equity requirement and simultaneously signals trust: a seller who leaves money in the business believes in its future.

Severance Pay as Equity

Those who have received severance pay upon termination can use it as equity in financing. Severance payments of 30,000to30,000 to 80,000 net are realistic in many cases—this, combined with KfW funds and seller financing, is sufficient to finance businesses in the 200,000to200,000 to 500,000 purchase price range.

What Sets an Acquisition Apart from a Fresh Start—and What That Means

An acquisition is not a fresh start on a greenfield site. This is both an advantage and a challenge.

The advantage is obvious: you take over something that works. You don’t have to build trust from scratch. Customers know the business. Employees know what to do.

The challenge lies in entering an existing structure without damaging what is already there. The most common mistake new owners make is changing too much too quickly. Employees who have lost their long-time boss and now face a stranger watch closely whether the new owner respects what has been built.

The first priority in the initial weeks and months should be listening. Understanding how the company really operates—not just on paper but in daily reality. Who actually makes decisions when the boss is not around? Which customers are difficult, which are especially loyal? What works well, and what has frustrated employees for years?

Only after answering these questions should changes begin.

Where to Search for Businesses

The biggest difference between job searching and business searching lies in transparency: job openings are public. Companies seeking successors often are not.

Many owners search discreetly—they do not want employees or customers to learn about a possible sale before a concrete buyer is found. This means many takeover opportunities do not appear on public exchanges.

The most important points of contact:

nexxt-change is Germany’s largest free business succession marketplace, published by the Federal Ministry for Economic Affairs. Here, owners post anonymously until a suitable candidate is found.

Viaductus aggregates listings from over 70 broker and marketplace sites and enables structured searches by industry, region, and purchase price—especially advantageous for those who do not yet know which industry or size category to target, offering a significant edge over a single platform.

Chambers of Industry and Commerce (IHK) and Chambers of Crafts operate their own succession marketplaces and actively mediate between sellers and potential buyers. Those registered there are proactively contacted when a suitable business comes on the market.

Industry networks and direct approaches are often the most effective method. Those known in an industry often hear first when a company is seeking a successor—before it appears on any marketplace.

A Realistic Picture: What You Should Bring

An acquisition is not an easy way out of unemployment. It requires preparation, capital, and the willingness to take on entrepreneurial responsibility.

What you should realistically bring:

Industry experience or basic commercial knowledge. Running a company is different from working in one. Those without experience in accounting, personnel management, and customer management should close these gaps deliberately—through consulting, courses, or an experienced mentor.

Equity of at least 15 to 20 percent of the purchase price. This is the minimum banks usually expect. Those who lack this should first check whether a guarantee bank can step in or if seller financing is possible.

Willingness to conduct due diligence. A business acquisition without thorough examination is risky. Financial statements, customer contracts, lease and rental obligations, liabilities, ongoing legal disputes—all must be reviewed before signing. A tax advisor and a lawyer are not optional extras.

Realism about the timeframe. From first contact to closing, a business acquisition typically takes six to twelve months. Those who do not factor this in will become frustrated.

Conclusion: The Quiet Alternative Deserves More Attention

The path out of unemployment in Germany almost always leads through job applications. That is understandable—it is the familiar route. But it is not the only route, and in a structurally weak labor market, it may not even be the most reliable.

Business succession offers an alternative that is systematically underestimated: taking over an existing company with a proven business model, existing customers, and trained employees. State-supported, bank-financeable, and with significantly better survival rates than startups.

There are 200,000 companies in Germany that need exactly this: someone to carry on. And there are 3 million people seeking a new professional start.

These two figures should come together more often.

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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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