How do I find a business to buy in Berlin?
The easiest way to find businesses for sale in Berlin is through the AI search function on viaductus. There, you can search specifically for companies available for purchase in Berlin.
viaductus is the search engine for buying and selling businesses, as we scan and compile the entire public M&A market for you.
How much does it cost to buy a business in Berlin?
This is difficult to specify, as it heavily depends on the size, location, industry, and financial situation of the company.
A good benchmark is usually the EBIT multiplier. This considers the company’s earnings before interest, taxes, and depreciation and multiplies it by a factor between 3 and 8.
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Why is Berlin an attractive location for business acquisitions?
Berlin has established itself as one of Germany’s most dynamic economic hubs, offering excellent conditions for business buyers. In 2023, the capital recorded an impressive economic growth of 1.6% — the third-highest growth rate nationwide and well above the German average of -0.3%. Particularly noteworthy is the consistency of this development: for over ten years, Berlin’s economic growth has consistently outperformed the national average.
As a buyer, you will find an environment in Berlin that offers ideal conditions for sustainable growth — employment figures increased by 1.6% in 2023, the second-highest rise among all federal states. The economic dynamism and large pool of qualified professionals create optimal conditions for a successful business acquisition.
What types of businesses can I buy in Berlin?
Berlin not only offers first-class infrastructure and a central location in Europe but also an exceptionally diverse business ecosystem. The capital is no longer just a hub for startups and technology companies but also home to numerous established medium-sized enterprises and Hidden Champions.
The offerings include:
- Innovative technology companies and startups in growth phases
- Established service providers across various industries
- Traditional craft businesses with loyal customer bases
- Specialized manufacturing companies
- Retail stores in prime locations
- Hospitality and hotel businesses
According to the Berlin Chamber of Commerce, around 7,500 companies in the region are expected to undergo succession by 2025, offering buyers a wide range of opportunities.
What does a business cost in Berlin?
One of the most common questions from potential buyers concerns the cost of acquiring a business in Berlin. The purchase price depends on numerous factors, with business valuation playing a central role. In Berlin’s startup scene, multiples between 5 and 10 times EBITDA are typical, while established medium-sized companies are valued between 4 and 8 times EBITDA depending on the industry and future prospects.
According to surveys by the IHK Berlin, the average valuation for small and medium-sized enterprises in Berlin currently ranges from approximately €300,000 to €3 million, while technology companies with scalable business models can achieve significantly higher valuations. In addition to the purchase price, potential buyers should also budget for the following transaction costs:
- Due diligence costs: 1-3% of the purchase price
- Legal and tax advisory fees: 1-2% of the purchase price
- M&A advisor fees: 3-7% of the purchase price (scaled down progressively)
- Notary and official fees
What financing options are available for buying a business in Berlin?
When it comes to financing a business acquisition, Berlin offers particular advantages compared to other locations. The Investitionsbank Berlin (IBB) provides special funding programs for business succession that can include favorable terms and guarantees. These programs are specifically designed to facilitate and promote the takeover of existing businesses.
The Berliner Sparkasse and Commerzbank also offer specialized financing programs tailored to the specific requirements of succession arrangements. As a buyer, you have access to a broad spectrum of customized financing options in Berlin.
Where can I find businesses for sale in Berlin?
Finding the right acquisition target can be challenging, especially when discretion is desired. However, there are numerous ways to find businesses for sale in Berlin:
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Specialized online platforms: In addition to nationwide portals like Viaductus.de, there are regional offerings such as the IHK Berlin business exchange and the Berlin-Brandenburg succession network.
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M&A advisors and auditors: Professional advisors in Berlin often have exclusive access to sales listings that are not publicly advertised. You can find an overview of trusted advisors at Find Advisors.
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Industry associations and networking events: Berlin is known for its vibrant event culture. Events like the "Long Night of Startups" or industry-specific meetups provide excellent networking opportunities.
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Financial institutions: House banks often mediate between sellers and potential buyers, especially for small and medium-sized enterprises.
According to a study by the Berlin School of Economics and Law, only about 20% of businesses for sale are publicly listed. The rest are discreetly offered through personal networks and specialized intermediaries, underscoring the importance of professional support during the search.
What legal and tax specifics should I be aware of in Berlin?
As a federal state, Berlin has some particularities to consider in business transactions. The state supports business takeovers through various programs and initiatives:
- The "Nachfolgenetzwerk Berlin" offers free initial consultations for buyers
- The Senate Department for Economics provides funding for external advisory services during succession processes
Regarding the tax structuring of business acquisitions, Berlin generally follows the same regulations as the rest of Germany. However, Berlin’s unique status as a city-state can offer advantages concerning trade tax. The trade tax multiplier in Berlin is 410%, which is moderate compared to other major German cities.
For international investors looking to acquire a business in Berlin, the city offers special advantages due to its international character. The economic development agency "Berlin Partner" supports foreign buyers with multilingual advisory services and helps overcome bureaucratic hurdles. This makes the tax treatment of foreign investors in Berlin comparatively straightforward.
Are there successful examples of business acquisitions in Berlin?
Berlin has seen numerous successful business transfers in recent years that can serve as inspiration. A notable example is the acquisition of the traditional Berlin bookstore "Marga Schoeller" in 2022, where the long-standing owner found a successor who recognized both the cultural significance and economic potential of the business.
In the technology sector, the sale of the Berlin-based AI startup "DeepL" to international investors demonstrated how high-level business sales in Berlin can work. The founders achieved an exceptionally high valuation through a carefully planned sales strategy and targeted approach to strategic investors, while simultaneously securing the Berlin location and jobs.
These examples show that Berlin offers optimal conditions for both traditional succession solutions and highly complex business sales. The combination of economic dynamism, international networking, and comprehensive support structures makes the capital an ideal location for business acquisitions.
What does the future of the Berlin M&A market look like?
Berlin continuously invests in future technologies and digital infrastructure. The city is the leading startup hub in Germany and Europe. Companies like Rocket Internet have shaped this image, and today Berlin’s international orientation attracts entrepreneurs from Germany and abroad.
This creates exciting prospects for the Berlin M&A market, especially in the area of digital transformation as a value driver. The maturing startup ecosystem leads to a growing number of exit opportunities. At the same time, established companies increasingly seek innovative acquisition targets to advance their digitization strategies.
The trend toward sustainable business practices as a value driver is also particularly evident in Berlin. The city has positioned itself as a center for GreenTech and sustainable innovation, opening new opportunities for future-oriented companies.
As a buyer, you can benefit from these future trends and invest in companies positioned in high-growth sectors.
How do I get professional support for my business acquisition in Berlin?
Whether you want to buy or sell a business, professional advice is crucial for success. An M&A advisor as a strategic partner can guide you through the complex process and ensure you achieve optimal results. Berlin offers a high concentration of specialized advisors familiar with both local specifics and international standards.
As a buyer, you benefit from their expertise in identifying suitable acquisition targets and conducting structured due diligence. An experienced advisor helps you identify potential risks and determine a fair purchase price.
Leverage the expertise of our network of experienced advisors to make your transaction a success. Contact us for a non-binding initial consultation and learn how we can support your project in Berlin.
Sources:
[1] berlin.de
[2] businesslocationcenter.de