Buy Companies in Lower Saxony

How do I find a business to buy in Lower Saxony?

The easiest way to find businesses for sale in Lower Saxony is through the AI search function on viaductus. There, you can search for companies currently on the market in Lower Saxony.
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 Lower Saxony?

This is difficult to say, as it depends heavily on the size, location, industry, and economic 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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Economic Strength and Industry Diversity in Lower Saxony

With its diverse economic structure, Lower Saxony is one of the most economically significant federal states in Germany. With a gross domestic product of €310 billion (2023) and growth of 0.2% contrary to the general downward trend in Germany, the state offers a solid foundation for entrepreneurs and investors looking to buy a company.

Lower Saxony’s economic strength is based on a balanced mix of traditional and forward-looking industries:

• Automotive Industry: Home to the Volkswagen Group in Wolfsburg, Lower Saxony hosts one of the world’s largest automobile manufacturers. Around VW, a dense network of suppliers and service providers has developed.

• Mechanical Engineering: Numerous medium-sized companies shape this sector and are often highly specialized global market leaders in their niches.

• Maritime Economy: The coastal location with the ports of Wilhelmshaven, Emden, and Cuxhaven makes Lower Saxony an important hub for shipbuilding, port logistics, and maritime services.

• Food Industry: With about 15% of Germany’s total agricultural production, Lower Saxony is a leading agricultural location. The food industry has developed correspondingly strong.

• Renewable Energies: Especially wind energy, both onshore and offshore, has gained great importance in Lower Saxony. The state is a pioneer in the energy transition and offers significant growth potential in this sector.

• Healthcare Industry: With an aging population, this sector is becoming increasingly important. Medical technology companies, care facilities, and specialized service providers shape this growth market.

This broad economic structure offers business buyers the opportunity to establish themselves in established industries or invest in innovative future markets.

Attractive Regions for Business Acquisitions in Lower Saxony

Lower Saxony is the second-largest federal state in Germany by area and offers various economic regions, each with its own strengths and focal points:

Hannover-Braunschweig-Göttingen-Wolfsburg

This region forms the economic center of Lower Saxony:

• Hannover: As the state capital and trade fair city, Hannover offers excellent infrastructure and a broad industry spectrum, especially in the service sector and IT industry.

• Braunschweig: The "research region" around Braunschweig is characterized by technology-oriented companies and a close integration of science and business, particularly in mobility and aerospace technology.

• Wolfsburg: The "Autostadt" is not only the headquarters of the VW Group but also home to numerous suppliers and service providers related to the automotive industry.

• Göttingen: The university location is a center for research and development with focuses on biotechnology and medical technology.

Coastal Region and East Frisia

The North German coastal region is distinguished by the following features:

• Wilhelmshaven: The JadeWeserPort, Germany’s only deep-water port, offers logistical advantages and potential for trade and logistics companies.

• Emden: The port and Volkswagen site shape the city’s economy, complemented by the growing offshore wind energy sector.

• East Frisia: Tourism, agriculture, and medium-sized enterprises characterize this region.

Oldenburg Region and Emsland

These regions in western Lower Saxony offer:

• Oldenburg: A diversified economic location with focuses on information technology, food industry, and healthcare sector.

• Emsland: One of the most dynamic economic regions in Lower Saxony with a strong SME sector, especially in mechanical engineering, metal industries, and food production.

Each of these regions offers specific advantages for business buyers depending on industry focus and strategic orientation.

Business Succession in the Lower Saxony SME Sector

Business succession is a central topic in Lower Saxony. According to the IHKN Succession Report, around 23,000 companies are expected to be handed over in the coming years, offering significant opportunities for potential buyers.

Succession Situation and Data Basis

• Approximately 40% of companies seeking succession aim for internal succession
• Around 60% are looking for external buyers or successors
• Particularly affected are companies with 10-49 employees, where succession is often unresolved
• The average age of business owners at handover is 65 years

This situation creates a "buyer’s market" with diverse takeover opportunities across nearly all industries.

Industries with High Succession Rates

The following industries show particularly high numbers of succession cases:

• Craft Trades: Traditional craft businesses often seek external successors due to skilled labor shortages and demographic changes.

• Retail: Owner-managed specialty stores frequently face succession challenges and offer opportunities for innovative business concepts.

• Gastronomy and Hospitality: Especially in tourist-attractive regions like the North Sea coast and the Harz mountains, many businesses are up for succession.

• Manufacturing Companies: Medium-sized manufacturing firms with specialized know-how increasingly seek external buyers.

• Service Sector: Consulting firms, IT service providers, and specialized B2B service providers offer interesting takeover opportunities.

Support for Business Succession

Lower Saxony has a well-developed network of institutions and programs supporting business buyers:

• Chambers of Industry and Commerce (IHK): Provide advice, mediation, and special succession consultation days
• Chambers of Crafts: Focused support for craft businesses in succession processes
• NBank: Financial support for business succession through favorable loans and guarantees
• Economic Development Agencies of Districts and Municipalities: Local support offers and networks
• Succession Moderators: Specially trained consultants to accompany handover processes

These structures significantly facilitate the business acquisition process and provide valuable resources for interested parties.

Financing and Funding for Business Acquisitions

Financing a business acquisition is a central challenge. Various financing and funding options are available in Lower Saxony:

Special Funding Programs for Business Takeovers

• NBank Start-up and Succession: Loans with favorable terms specifically for business succession
• ERP Start-up Loan – Universal: Nationwide KfW program with attractive interest rates
• ERP Capital for Start-ups: Subordinated loans to strengthen equity capital
• Lower Saxony Guarantees: Guarantees for bank loans up to 80% of the loan amount
• Micro-Mezzanine Fund Germany: Silent partnerships for smaller acquisitions

These programs can often be combined and enable a solid financing structure with reduced equity requirements.

Equity Requirements and Financing Tips

For a successful business acquisition in Lower Saxony, the following aspects should be considered:

• An equity ratio of at least 15-20% of the purchase price is generally expected
• Combinations of bank loans, funding, and alternative financing forms such as seller financing are often effective
• A thorough Due Diligence is essential for bank financing approval
• Consideration of working capital reserves for the initial phase after acquisition
• Professional support from financing advisors can significantly ease the process

Early and thorough financing planning is a key success factor in business acquisitions and should be approached with due diligence.

Legal Framework and Specifics

Acquiring a business in Lower Saxony is subject to various legal frameworks that must be observed:

Forms of Acquisition: Asset Deal vs. Share Deal

There are basically two models for business acquisition:

• Asset Deal: Individual assets and legal positions of the company are acquired. This form is common for sole proprietorships and partnerships.

• Share Deal: Company shares or equity interests are acquired, resulting in the takeover of the entire company. This form is typical for corporations such as GmbHs.

The choice between these models has significant legal, tax, and liability implications that should be weighed individually.

Industry-Specific Legal Requirements

In Lower Saxony, certain industries are subject to specific legal requirements that must be considered during acquisition:

• Craft Trades: Registration in the crafts register, often linked to qualification requirements (master craftsman certificate)
• Gastronomy: Licenses and official permits that must be transferred or newly applied for
• Healthcare: Special admission requirements for pharmacies, care facilities, etc.
• Transport Industry: Special permits and licenses for transport services
• Financial and Insurance Mediation: Licensing requirements under the Trade Regulation Act

Early clarification of these legal requirements is essential to avoid surprises after the purchase.

Labor Law Aspects

Special labor law provisions apply to business acquisitions, especially § 613a BGB regarding business transfers:

• Employment contracts transfer to the buyer with all rights and obligations
• Terminations solely due to the business transfer are invalid
• Employees have the right to object to the transfer of their employment
• Collective agreements and works agreements generally continue to apply

A careful review of existing employment relationships and their conditions is therefore an important part of the Due Diligence.

Innovation Potential and Future Industries

Lower Saxony actively invests in promoting innovation and future technologies, making it particularly attractive for forward-looking business buyers.

Research and Development

The state boasts excellent research infrastructure:

• Universities and Colleges: Leibniz University Hannover, TU Braunschweig, University of Göttingen, and other institutions form a dense network of research facilities.

• Non-University Research: Numerous Fraunhofer and Max Planck Institutes as well as the German Aerospace Center (DLR) in Braunschweig promote technology transfer.

• Research Collaborations: Closely linked structures between science and industry, especially in mobility, energy technology, and bioeconomy.

This research landscape creates an innovation-friendly environment and offers companies access to the latest technologies and qualified specialists.

Future Industries with Special Potential

The following industries in Lower Saxony show particular growth and innovation potential:

• Renewable Energies: Especially wind energy (onshore and offshore), but also biogas and hydrogen technology. Massive investments are expected in this sector with the goal of climate neutrality by 2045.

• Mobility Transition: The transformation of the automotive industry toward electric and autonomous vehicles creates new business fields and takeover opportunities in the supplier structure.

• Digitalization and IT: Software development, IT services, and digital business models are growing above average and benefit from good broadband infrastructure.

• Healthcare Industry: Medical technology, e-health, and specialized care services gain importance due to demographic change.

• Bioeconomy: The combination of agriculture and modern biotechnologies creates sustainable value chains and innovative business models.

Business buyers investing in these future industries can benefit from positive development trends and funding structures in Lower Saxony.

Infrastructure and Location Advantages

Lower Saxony offers excellent infrastructure, which represents a significant location advantage for companies.

Transport and Logistics

The strategically favorable location and excellent transport connections make Lower Saxony an ideal business location:

• Ports: With Wilhelmshaven (JadeWeserPort), Brake, Emden, and Cuxhaven, Lower Saxony has powerful seaports that facilitate access to international markets.

• Road Network: A dense motorway network with key axes A1, A2, A7, and A27 connects Lower Saxony optimally with national and European economic centers.

• Rail Transport: Important railway lines intersect in Lower Saxony, and the Maschen marshalling yard near Hamburg is one of the largest in Europe.

• Airports: Hannover International Airport and other regional airports ensure air traffic connections.

These logistics advantages are especially valuable for manufacturing companies and trading firms with supraregional or international customer bases.

Digital Infrastructure

Lower Saxony is investing heavily in expanding digital infrastructure:

• Comprehensive broadband expansion aiming for gigabit-capable infrastructure
• Expansion of the 5G mobile network for innovative applications
• Digital administration with increasingly electronic processes simplifying bureaucratic procedures
• Special funding programs for the digitalization of small and medium-sized enterprises

This digital infrastructure forms the basis for future-proof business models and innovative company processes.

Skilled Labor Potential and Education

A decisive location factor is the availability of qualified skilled workers:

• Lower Saxony has 21 universities with over 200,000 students
• A dual education system with strong practical orientation
• Targeted skilled labor initiatives by the state government to secure workforce demand
• Attractive quality of life facilitating the recruitment of skilled workers from other regions

These factors ensure companies access to qualified employees—a crucial success factor, especially for knowledge-intensive industries.

Successful Business Acquisitions in Lower Saxony

In recent years, numerous successful business acquisitions have been realized in Lower Saxony. Some examples illustrate the potential and success factors:

Exemplary Acquisitions

• A medium-sized mechanical engineering company in the Hannover region was taken over by a former manager of a large corporation and was able to double its sales within three years by opening up international markets.

• A long-established bakery chain in the Oldenburg region found a succession solution in an entrepreneur from a different industry who was able to tap new customer groups through digitalization and innovative marketing concepts.

• An IT service provider from Braunschweig was acquired by a strategic investor, enabling synergies and entry into new technology fields.

These success stories demonstrate that a business acquisition in Lower Saxony can offer significant growth opportunities with the right strategy and preparation.

Lessons from Successful Acquisitions

Important insights can be drawn from successful business acquisitions:

• Thorough Due Diligence: A comprehensive examination of the target company is essential to identify hidden risks and potentials.

• Sensitive Employee Management: Early involvement of the workforce and transparent communication are key factors for successful integration.

• Cultural Change: Careful development of corporate culture while respecting established structures has proven to promote success.

• Strategic Development: Successful buyers have clear ideas about strategic orientation and implement them consistently.

• Regional Network: Integration into regional economic structures and networks supports successful development after acquisition.

These insights can serve as guidance for potential business buyers and increase the likelihood of a successful takeover.

Support and Consulting for Business Buyers

Planning and executing a business acquisition requires professional support. A wide range of consulting services is available in Lower Saxony:

Public Contact Points

• IHK Business Service: The Chambers of Industry and Commerce in Lower Saxony offer comprehensive initial consultations and mediation services for business buyers.

• Chambers of Crafts: Specialized consulting services for the takeover of craft businesses.

• Economic Development Agencies: Municipal and regional economic development agencies provide local expertise and networks.

• NBank: Advice on financing and funding options for business acquisitions.

These public institutions often offer low-cost or free initial consultations and can facilitate entry into the takeover process.

Private Consultants and Service Providers

For a successful business acquisition, involving specialized advisors is usually recommended:

• M&A Advisors: Assist in finding suitable takeover candidates and accompany the entire transaction process. With an experienced M&A advisor, you significantly increase your chances of a successful acquisition.

• Business Valuers: Support objective determination of company value as a basis for purchase price negotiations.

• Lawyers: Specialized attorneys for business acquisitions and sales are indispensable for contract drafting and legal due diligence.

• Tax Advisors: Optimize the tax structuring of the acquisition and minimize tax risks.

• Financing Advisors: Assist in structuring purchase price financing and applying for funding.

Investing in professional advice usually pays off through better terms, reduced risks, and a higher probability of success.

Networks and Brokerage Platforms

Various platforms are available to identify potential takeover candidates:

• viaductus: The nationwide business succession marketplace with numerous offers from Lower Saxony
• IHK Succession Platforms: Regional offerings from the Lower Saxony Chambers of Industry and Commerce
• Industry-Specific Platforms: Specialized marketplaces for certain economic sectors
• M&A Portals: Professional brokerage platforms for larger transactions

In addition, personal networks and direct contacts within the business community are often key to finding attractive takeover opportunities not publicly advertised.

Practical Tips for Business Buyers in Lower Saxony

The following recommendations have proven useful for potential business buyers in Lower Saxony:

Do's – What You Should Consider

• Consider Regional Conditions: Economic structures vary significantly within Lower Saxony. What works in Hannover may not necessarily succeed in East Frisia.

• Use Networks: Personal contacts and active networking in regional business circles increase the chances of attractive takeover offers.

• Be Patient: The perfect takeover candidate is rarely immediately available. A long-term search strategy with clear criteria is more likely to succeed.

• Plan Financing Early: Securing financing should proceed in parallel with the search for a takeover candidate.

• Plan Transition Phases: A supported transition period with the previous owner facilitates the takeover of customer relationships and implicit knowledge.

Don'ts – What to Avoid

• Rushed Decisions: Even with apparent "bargains," thorough due diligence is essential.

• Underestimating Industry Knowledge: Buyers from outside the industry should familiarize themselves intensively with specific market conditions.

• Focusing Solely on Financial Metrics: Soft factors such as corporate culture, employee loyalty, and market reputation are equally important.

• Neglecting Post-Merger Integration: The real success of a business acquisition is decided in the phase after the takeover.

• Overpaying: A realistic valuation of the takeover candidate prevents later financial bottlenecks.

With these tips and professional preparation, the chances are good to find a suitable business in Lower Saxony and successfully acquire it.

Sources:
[1]: Statistics Lower Saxony: Economic Development 2023
[2]: IHKN Succession Report: Business Succession in Lower Saxony