Buy Companies in Thuringia

How do I find a business to buy in Thuringia?

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

This is difficult to say, as it depends heavily on the size, location, industry, and financial situation of the business.
A good benchmark is usually the EBIT multiplier. This considers the company’s earnings before interest, taxes, and depreciation, multiplied by a factor between 3 and 8.
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Why is Thuringia an attractive location for business acquisitions?

Thuringia has developed into an increasingly attractive business location in recent years, offering excellent conditions for business buyers. The Free State, located in the heart of Germany, is characterized by its central location, well-developed infrastructure, and diverse economic structure. With stable economic growth that has regularly exceeded the German average in recent years, Thuringia provides a solid foundation for entrepreneurial success.

As a buyer, you will find an environment shaped by a strong SME sector, innovative technology companies, and traditional craftsmanship. Particularly, the optics, automotive suppliers, medical technology, and renewable energy sectors have become significant economic drivers. The high density of research institutions and universities also fosters an innovation-friendly climate and a skilled workforce.

What types of businesses can I buy in Thuringia?

Thanks to its diverse economic structure, Thuringia offers a wide range of companies suitable for purchase or succession. The Free State is known for its healthy mix of traditional craft businesses, innovative technology firms, and established industrial companies.

The offerings include:

• Traditional craft businesses with a long history and loyal customer base
• Innovative companies in optics and photonics
• Specialized suppliers for the automotive industry
• Companies in medical technology and healthcare
• Businesses in mechanical engineering and metal processing
• Service providers across various sectors
• Retail stores in prime locations
• Companies in renewable energy and environmental technology

According to the Thuringian Development Bank, around 6,000 companies in Thuringia will be available for succession in the coming years, offering diverse opportunities for potential buyers.

What does a business cost in Thuringia?

Prices for businesses in Thuringia vary widely depending on industry, size, location, and financial condition. The purchase price is primarily determined by the business valuation, which can apply various methods.

For small and medium-sized craft or service companies in Thuringia, purchase prices typically range between €200,000 and €1 million. For medium-sized industrial or technology firms, valuations can be significantly higher, reaching several million euros.

The most common valuation methods in Thuringia are:

• Multiplier method: Depending on the industry, this applies a factor of 4 to 7 times EBITDA or 0.5 to 1.5 times annual revenue
• DCF method for larger companies with stable cash flows
• Asset-based valuation, especially for companies with significant fixed assets

As a buyer, you should also factor in the following transaction costs in addition to the purchase price:

• 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 (degressively scaled)
• Notary fees and official charges

What financing options are available for buying a business in Thuringia?

Thuringia offers particularly attractive financing options for business buyers through a well-developed network of funding instruments. The Thuringian Development Bank (TAB) has launched special programs to support business succession, offering favorable terms and partial guarantees.

The following financing options are available in Thuringia:

1. Bank financing: The classic debt financing through commercial banks, often combined with promotional loans.

2. Funding programs: TAB offers special succession programs with low-interest loans and longer terms. Nationwide programs such as the ERP Start-up Loan from KfW can also be utilized.

3. Equity capital: The bm-t Beteiligungsmanagement Thüringen GmbH provides equity and mezzanine capital for business acquisitions.

4. Guarantees: The Thuringian Guarantee Bank can cover up to 80% of the credit risk, facilitating financing.

5. Combined financing: Often, various financing sources are combined to achieve an optimal capital structure.

The Business Succession Advisory Office of the Thuringian Chambers of Commerce offers free initial consultations on the appropriate financing strategy for your business purchase.

Where can I find businesses for sale in Thuringia?

Searching for a suitable acquisition target in Thuringia can be done through various channels. Many business sales are handled discreetly, so not all companies for sale are publicly advertised.

The following avenues lead to acquisition opportunities in Thuringia:

1. Succession exchanges and platforms: Besides Viaductus.de, there are regional offerings such as the succession exchange of the IHK Thuringia or the "nexxt-change" portal. An alternative to Nexxt-Change can also be helpful.

2. Chambers and economic development agencies: The Chambers of Industry and Commerce as well as the Chambers of Crafts in Thuringia offer succession advice and mediate between sellers and potential buyers.

3. Specialized advisors: M&A advisors and auditors often have exclusive access to sales offers that are not publicly listed.

4. Networking events: Regular events such as the "Thuringian Succession Day" or industry-specific meetings provide opportunities to connect with potential sellers.

5. Direct approach: Targeted outreach to companies in the desired industry can also be successful, as many business owners consider selling but do not actively advertise it.

Approximately 70% of all business sales in Thuringia are conducted without public listing, highlighting the importance of networks and professional support.

What legal and tax specifics are there in Thuringia?

When buying a business in Thuringia, the nationwide uniform legal and tax regulations generally apply. However, there are some regional specifics and support programs that may be of interest to buyers:

1. Funding offers: The state of Thuringia supports business takeovers with various programs, including grants for consulting services related to succession and special financing instruments.

2. Trade tax: Trade tax rates in Thuringia average around 380%, slightly below the national average, which can offer tax advantages. Particularly in rural areas, some municipalities have very low rates.

3. Real estate transfer tax: For asset deals involving real estate, Thuringia applies a real estate transfer tax of 6.5%.

4. Support networks: The "Thuringian Succession Initiative" bundles various stakeholders and provides coordinated assistance on legal and tax issues related to succession.

5. Tax advisory: Given the complexity of the tax aspects of business acquisitions, specialized advice is recommended to minimize tax risks and optimally utilize planning opportunities.

For optimal tax structuring, you should engage a Thuringia-based tax advisor experienced in business acquisitions early on.

Are there successful examples of business takeovers in Thuringia?

Thuringia can point to numerous successful examples of accomplished business takeovers. These success stories demonstrate the potential of acquiring existing companies:

1. Craft takeover in Erfurt: A young master craftsman took over a traditional carpentry business with 12 employees and led it to significant growth through modernization and digitalization. Today, the company employs over 25 people and has more than doubled its revenue.

2. Technology company in Jena: A former manager of a large corporation acquired a specialized optics company through a management buy-in (MBI) and was able to open new markets through his industry contacts.

3. Family succession in southern Thuringia: A medium-sized mechanical engineering company was handed over to the son in combination with an external managing director, bringing fresh momentum to the company while preserving the family tradition.

These examples illustrate that Thuringia, with its mix of tradition and innovation, provides fertile ground for successful business acquisitions. The combination of existing know-how and fresh ideas from new owners often proves to be the key to success.

What does the future of the Thuringian M&A market look like?

The M&A market in Thuringia faces exciting developments and offers numerous opportunities for potential buyers. Several trends will shape the market’s future:

1. Demographic change: In the coming years, many companies from the "post-reunification generation" will be up for succession as many owners reach retirement age. This opens opportunities for buyers to take over established businesses.

2. Technological transformation: Many traditional companies in Thuringia face the challenge of digital transformation. Buyers with the relevant expertise can provide important impetus here.

3. Industry consolidation: In some sectors such as crafts and production-related services, consolidation is emerging, leading to larger, economically stronger entities.

4. Sustainability trend: The trend toward sustainable business practices opens new business fields, especially in renewable energy and resource efficiency.

5. International investors: Increasingly, international investors are discovering Thuringia with its innovative companies and attractive valuations.

These developments offer buyers diverse opportunities to invest in established companies with growth potential. Thuringia’s economic dynamism and good infrastructure provide ideal conditions for this.

How do I get professional support for my business acquisition in Thuringia?

A successful business acquisition requires professional support from experts familiar both with the specific market conditions in Thuringia and the general challenges of business transactions.

The following contacts can assist you:

1. M&A advisors: An M&A advisor as a strategic partner can guide you through the entire purchase process—from searching for suitable targets and valuation to contract drafting and integration.

2. Chambers and economic development agencies: The Thuringian Chambers of Industry and Commerce as well as the Chambers of Crafts offer specialized succession advice and can connect you with experts.

3. Financing advisors: Specialists in succession financing help you develop the optimal financing structure, including funding programs.

4. Legal and tax advisors: Specialized lawyers and tax consultants support you with legal structuring and tax optimization.

5. Due diligence specialists: For thorough examination of the acquisition target during due diligence, specialists with industry-specific expertise are indispensable.

Use our platform to find suitable advisors and benefit from their expertise. Professional support for your business acquisition in Thuringia significantly increases the chances of a successful transaction and a smooth start as a new business owner.

Sources:

[1] Thuringian Development Bank
[2] IHK Thuringia
[3] Thuringian Ministry for Economy, Science and Digital Society