Brandenburg as an Economic Location: The Foundation for Business Sales
In recent years, Brandenburg has developed into an increasingly attractive economic location, offering promising prospects for business sellers. With a gross domestic product of approximately 79 billion euros (2023) and steadily growing economic strength, the state provides favorable conditions for successful business transactions.
Its strategic position around Berlin, along with proximity to Poland and other Eastern European markets, gives Brandenburg a unique geopolitical significance. These locational advantages make Brandenburg companies appealing to investors seeking a central position within the European economy. The excellent transport infrastructure—including Berlin Brandenburg Airport (BER), an extensive highway network, and waterway connections—further enhances this attractiveness.
Particularly, the economic development corridors along the Berlin orbital motorway and the cities of Potsdam, Cottbus, Frankfurt (Oder), and Brandenburg an der Havel have evolved into dynamic economic centers. Industrial focal points in vehicle manufacturing, food production, metal industry, logistics, and increasingly renewable energies provide a solid foundation for valuable business sales.
The establishment of major projects such as the Tesla Gigafactory in Grünheide and the BASF battery components plant in Schwarzheide has further strengthened Brandenburg as a business location and sparked interest from both national and international investors. This development positively impacts the overall environment for business sales and can lead to higher valuations.
Challenges in Business Succession in Brandenburg
Business succession in Brandenburg faces particular challenges shaped by regional characteristics. According to the state’s Chambers of Industry and Commerce, around 5,000 small and medium-sized enterprises will undergo generational change within the next five years. This corresponds to approximately 50,000 jobs that depend on successful succession arrangements.
Demographic trends exacerbate the situation. While the Berlin metropolitan area benefits from population influx and a relatively young demographic, many rural regions in Brandenburg struggle with outmigration and aging populations. This results in a shortage of potential local successors, compelling business sellers to seek buyers beyond the region or even internationally.
Another specific challenge lies in Brandenburg’s business structure. Many companies were founded after reunification and are now facing their first generational transition. Often, these are owner-managed businesses where knowledge and customer relationships are closely tied to the founder. Early preparation for the sale, including systematic knowledge transfer and establishing a second management level, is therefore particularly important.
The shortage of skilled workers presents an additional challenge and can affect business valuation. Companies with qualified staff and active talent development have a distinct advantage in sales negotiations. In some industries and regions of Brandenburg, personnel issues can even become the decisive factor for sales success.
Brandenburg’s Industry Diversity as an Opportunity for Sellers
Brandenburg’s diversified economic structure offers business sellers from various sectors promising prospects:
In the food industry, Brandenburg has established itself as a significant location with over 400 companies. Proximity to the Berlin market, access to regional raw materials, and a growing focus on organic products and sustainability make these businesses attractive to investors. Companies with innovative products or established brands can achieve above-average prices in sales.
The metal and electrical industries have a strong traditional presence in Brandenburg, benefiting from well-trained specialists and proximity to research institutions. Suppliers to the automotive industry, rail construction, or aerospace are particularly interesting to strategic buyers seeking access to specialized manufacturing expertise.
The logistics sector continues to grow due to Brandenburg’s central location between Western Europe and Eastern European markets. The expansion of the Frankfurt (Oder)/Eisenhüttenstadt freight traffic center and rail connections to Poland and the Baltic states underline its strategic importance. Logistics companies with modern fleets, warehouses, or specialized know-how currently enjoy favorable sales conditions.
Tourism is an important economic factor, especially in the water-rich Spreewald region, the Oder-Spree lake district, and the Hoher Fläming Nature Park. Hotels, gastronomy, and leisure businesses benefit from the growing trend toward domestic tourism and proximity to Berlin. Well-positioned companies with sustainable concepts and a digital presence can command attractive sale prices.
The renewable energy sector has gained great significance in Brandenburg, with over 400 wind farms and numerous solar installations. The state is among Germany’s leading producers of renewable energy. Project developers, suppliers, and service providers in this field attract strong investor interest, capitalizing on the growing green energy market.
Support Services for Sellers in Brandenburg
Brandenburg offers a well-developed network of support services for entrepreneurs wishing to sell their businesses:
The Chambers of Industry and Commerce in Potsdam, Cottbus, and Frankfurt (Oder) have established the "Succession in Brandenburg" initiative as a central point of contact for all questions related to business succession. They provide individual consulting, events, and brokerage services for business sellers. Close cooperation with regional economic development agencies, chambers, and associations creates a dense advisory network supporting the entire sales process.
The Brandenburg Chambers of Crafts offer comprehensive succession consulting specifically for craft businesses. They assist with business valuation, finding suitable buyers, and structuring the sales process. With their regional expertise and extensive networks, they can identify and approach potential successors effectively.
The Brandenburg Investment Bank (ILB) provides various financing instruments that can also benefit sellers, for example, in employee buyouts (Management Buy-Out). Special funding programs such as the "Brandenburg Credit Succession" offer favorable conditions for business takeovers.
The "Pilot Network for Business Transfers Brandenburg" supports both sellers and buyers through experienced advisors. These "pilots" accompany the entire transfer process, connect specialized experts, and facilitate contacts with potential successors. The network is funded by the Brandenburg Ministry of Economic Affairs and is represented throughout the state.
Specialized M&A advisors with a regional focus possess detailed market knowledge and can professionally manage the entire sales process. They often have access to non-public buyer inquiries and can establish discreet contacts with potential investors.
The Sales Process in Brandenburg
Selling a business in Brandenburg should be carefully planned and structured:
The preparation phase ideally begins two to three years before the planned sale. During this time, you can focus on optimizing your business: cleaning up the balance sheet, increasing profitability, resolving legal issues, and documenting key processes and customer relationships. An early business valuation provides guidance for the desired sale price.
Regional particularities must be considered in valuations in Brandenburg. While companies in the Berlin metropolitan area often achieve higher multiples, discounts may need to be accepted in peripheral regions. Businesses with a supraregional customer base or specialized products have an advantage here.
Professionalism is essential when preparing the sales documents. A compelling sales prospectus presents your company optimally and contains all relevant information for potential buyers. An anonymized short profile (Teaser) serves as the initial contact point without revealing too many details.
Buyer search is conducted discreetly and purposefully. Depending on company size and industry, various approaches can be chosen: from direct contact with strategic investors through specialized M&A advisors to online platforms like viaductus. Due to Brandenburg’s geographic location, approaching Polish or other Eastern European investors is also an option worth exploring.
Following initial discussions with interested buyers and signing a confidentiality agreement, the due diligence phase begins, during which the potential buyer thoroughly examines your company. Professional preparation for this review is crucial for a smooth process and avoids unpleasant surprises later in the sales process.
During negotiations, purchase price, payment terms, and transition arrangements are determined. Special attention should be paid to the tax aspects of the transaction, the structuring of the purchase agreement, and any earn-out arrangements.
Tax and Legal Particularities in Brandenburg
Selling a business has significant tax implications that also apply in Brandenburg:
In an Asset Deal, i.e., the sale of individual company assets, profits are generally subject to income tax. Under certain conditions, however, exemptions under § 16 EStG can be utilized, especially if the seller is over 55 years old.
In a Share Deal, i.e., the sale of company shares, tax treatment depends on the legal form. For corporations, the partial income procedure applies, allowing 40% of capital gains to remain tax-free. For partnerships, the partial income procedure may also apply in certain cases.
Establishing a holding structure before the sale can offer tax advantages and should be examined in advance. Gradual transfer of company shares (partial sales) can also contribute to tax optimization.
A Brandenburg-specific feature is the availability of funding programs for business takeovers, which may include tax components. The Brandenburg Investment Bank (ILB) offers special programs such as the "Brandenburg Credit Succession," providing favorable financing options for buyers and indirectly supporting the sales process.
Cross-border sales, which are more common in Brandenburg due to its proximity to Poland, require additional tax considerations. Here, double taxation agreements play an important role in avoiding unnecessary tax burdens.
Early consultation with specialized tax experts is essential to minimize tax liabilities during the business sale. Investing in professional tax advice usually pays off multiple times through significant tax savings.
Tips for a Successful Business Sale in Brandenburg
To optimally sell your Brandenburg business, consider the following regional specifics:
Highlight Brandenburg’s strategic locational advantages. Proximity to Berlin, excellent infrastructure, and the gateway position to Eastern Europe are valuable assets to emphasize in sales documents and discussions. These factors can be decisive, especially for buyers operating supraregionally or internationally.
Actively utilize regional networks and support services. Brandenburg has well-developed structures to promote business succession. The "Pilot Network for Business Transfers," chambers, and economic development agencies offer valuable contacts and expertise that can facilitate the sales process.
Incorporate regional economic developments into your sales strategy. Major settlements like Tesla in Grünheide create new economic momentum from which smaller companies can also benefit. If your business is or could become part of a relevant value chain, highlight this in your sales documents.
Proactively address the skilled labor issue. The shortage of skilled workers is a challenge in many parts of Brandenburg. Companies with qualified employees and strategies for recruitment and retention are particularly attractive to buyers. Document your measures and successes in this area carefully.
Explore cross-border sales options. Proximity to Poland opens additional possibilities for buyer search. Polish companies planning expansion into Germany can be interesting buyers. Cultural differences and specific legal aspects must be considered, so support from experienced advisors with international expertise is recommended.
Allow sufficient time for the sales process. In rural Brandenburg, finding a buyer may take longer than in economic centers. A realistic timeframe of 12 to 24 months from the first step to successful completion should be factored in.
Successful Succession Examples from Brandenburg
A medium-sized metal construction company from Havelland was successfully sold to a strategic investor from Poland. The seller had established a second management level early and modernized the company digitally. The cross-border transaction was supported by the Potsdam Chamber of Industry and Commerce and specialized M&A advisors, resulting in a win-win situation for both parties.
A bakery chain in the Spreewald solved succession through a Management Buy-In. An experienced master baker from Saxony took over the business and opened new regional markets through his contacts. Financing was supported by the Brandenburg Investment Bank (ILB), which made the takeover possible for the buyer.
A logistics company from Frankfurt (Oder), specializing in Eastern European traffic, was sold to a larger German logistics company. The seller achieved an above-average sale price thanks to the strategic location near the Polish border and specialized focus. Long-term contracts with key customers and expertise in cross-border transport were decisive value drivers.
A traditional craft business from Prignitz secured succession through employee participation. Gradual transfer of company shares to long-standing employees enabled a smooth transition and secured the seller’s retirement provision. Support from the Chamber of Crafts and the Pilot Network facilitated structuring and financing.
These examples demonstrate that despite Brandenburg’s specific challenges, successful business sales are possible when well prepared and professionally supported.
Conclusion: Brandenburg as a Promising Location for Business Sales
Brandenburg offers excellent conditions for successful business sales with its strategic location, economic development prospects, and comprehensive support services. While demographic changes in some regions pose challenges for succession, proximity to Berlin, the presence of major investors, and the gateway function to Eastern Europe create new opportunities for well-prepared sellers.
Demographic shifts and upcoming generational changes present challenges but also opportunities for entrepreneurs who prepare their business early for sale. Those who plan ahead, position their company for the future, and manage the sales process professionally can achieve attractive sale prices even in an increasingly competitive environment.
The extensive support services of regional institutions and well-developed networks significantly facilitate the sales process. Sellers should actively leverage these resources and secure competent advice early. Particularly, involving specialized M&A advisors and utilizing state funding programs can become key success factors.
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