What Opportunities Does the Economic Location of Saxony-Anhalt Offer to Business Sellers?
In recent years, Saxony-Anhalt has developed into an attractive business location that offers specific advantages to business sellers. With a gross domestic product of €68.5 billion (2023) and solid growth of 2.8% compared to the previous year, the federal state demonstrates positive economic development. This dynamic creates a favorable environment for business sales and increases the appeal for potential buyers.
Its central location in the heart of Germany, combined with excellent infrastructure, makes Saxony-Anhalt a top-tier logistical hub. Five motorways, two international airports in close proximity, and connections to important waterways such as the Elbe River and the Mittelland Canal provide companies with optimal conditions for nationwide business activities. These location advantages enhance the value of local companies for buyers seeking expansion opportunities.
A particular benefit is the extensive funding landscape that Saxony-Anhalt offers as a structurally weaker region. Investors can take advantage of attractive grant programs, making the acquisition of an existing business economically more appealing and potentially positively influencing sale prices. The Investment and Development Bank of Saxony-Anhalt provides specialized programs to support business succession.
What Is the Succession Situation in Saxony-Anhalt’s SME Sector?
The SME sector in Saxony-Anhalt comprises around 85,000 small and medium-sized enterprises, securing approximately 70% of all jobs in the state. According to surveys by the Chamber of Industry and Commerce (IHK) Saxony-Anhalt, about 6,000 of these companies will face succession challenges within the next five years.
A unique feature in Saxony-Anhalt is the historically younger age structure of many companies. Numerous businesses were founded only after reunification, and the founding generation is now reaching retirement age. This is leading to a wave of succession cases that will increase in the coming years, opening an important market for business buyers.
The average equity ratio of companies in Saxony-Anhalt is 26.4%, providing a solid foundation for prospective buyers. However, demographic developments, including the migration of younger, well-educated professionals, pose challenges in finding internal family or regional successors. At the same time, this creates opportunities for buyers from other regions who want to take over and further develop established business models.
Which Industries Are Particularly in Demand for Business Acquisitions in Saxony-Anhalt?
Saxony-Anhalt is characterized by a diversified economic structure, with certain industries strongly represented and generating high demand in business acquisitions:
The chemical and plastics industry, anchored by traditional chemical hubs in Leuna, Schkopau, and Bitterfeld-Wolfen, forms a significant economic sector. Companies in this industry, especially specialized suppliers and service providers, are highly sought after by strategic investors who want to benefit from the established infrastructure and networks.
Mechanical and plant engineering has a long tradition in Saxony-Anhalt and is today shaped by innovative medium-sized companies. Businesses specializing in energy technology, environmental technology, or automation solutions achieve attractive valuations in sales.
The food industry, with well-known companies, is among the growth sectors in the state. Proximity to high-quality agricultural products and excellent logistics make food producers and processors attractive acquisition targets.
The renewable energy sector, particularly wind power, bioenergy, and solar energy, is steadily gaining importance in Saxony-Anhalt. Favorable natural conditions and political support for the energy transition provide stable future prospects, making these companies especially appealing to buyers.
The health economy and life sciences sector, centered around the Halle-Leipzig region, has also established numerous innovative companies that benefit from integration into regional clusters during sales.
How Is the Value of a Company in Saxony-Anhalt Determined?
The valuation of a company in Saxony-Anhalt generally follows established methods but takes regional specifics into account:
The income approach forecasts the company’s future earnings and discounts them to present value. In Saxony-Anhalt, regional economic trends must be considered: companies in growth industries such as renewable energy or chemicals may benefit from positive outlooks, while a more cautious forecast may be appropriate in other sectors.
The multiplier method uses industry-specific factors multiplied by key figures like EBIT or EBITDA. In Saxony-Anhalt, these multipliers vary significantly by sector: companies in renewable energy or life sciences often receive EBITDA multiples between 5 and 8, whereas manufacturing craft businesses typically range between 3 and 5.
The asset-based approach considers the tangible value of all assets minus liabilities. This method is particularly important for asset-intensive companies, such as those in manufacturing or agriculture.
For a well-founded valuation, consulting an experienced business appraiser familiar with regional market conditions is recommended. A professional valuation forms the basis for realistic price expectations and increases the chances of a successful sale.
What Support Can Sellers in Saxony-Anhalt Utilize?
Saxony-Anhalt offers a broad network of support services for entrepreneurs looking to sell their businesses:
The Chambers of Industry and Commerce in Magdeburg and Halle-Dessau have dedicated succession advisors who assist in preparing the sale. They operate their own succession exchanges and organize events such as the "Succession Day Saxony-Anhalt," which brings sellers and potential buyers together.
The Chambers of Crafts in Magdeburg and Halle provide business consultants focused on business succession. They support company valuations and can connect suitable prospects from their networks.
The Investment and Development Bank Saxony-Anhalt (IB) offers specialized financing programs for business succession that benefit both sellers and buyers. The "Saxony-Anhalt IMPULS" program specifically supports startups through business succession.
The SME Investment Company Saxony-Anhalt provides equity capital for succession financing, facilitating the sales process.
Specialized M&A advisors focusing on the Central German economic region possess valuable market knowledge and buyer networks. They can professionally manage the entire sales process and achieve an optimal sale price.
Online platforms like viaductus complement traditional buyer search methods and increase the chances of finding the right successor for your business in Saxony-Anhalt.
How to Optimize the Sales Process in Saxony-Anhalt?
Selling a business in Saxony-Anhalt follows a structured process that, when well-prepared, leads to success:
The preparation phase should ideally begin 1-2 years before the planned sale. During this time, you can work on optimizing your business: cleaning up the balance sheet, increasing profitability, clarifying legal issues, and documenting key processes and customer relationships.
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 point of contact.
Buyer search is conducted discreetly and purposefully. In Saxony-Anhalt, besides classic approaches like direct contact with strategic investors, regional networks and events such as the "Succession Day Saxony-Anhalt" are effective. Due to demographic challenges, searching beyond the region for potential buyers is advisable.
After initial talks with interested buyers and signing a confidentiality agreement, the due diligence phase follows, during which the prospective buyer thoroughly examines your company.
In the negotiation phase, purchase price, payment terms, and transition arrangements are agreed upon. Special attention should be paid to the tax aspects of the transaction and the drafting of the purchase agreement.
A realistic timeframe for the entire sales process is usually 6 to 12 months. Professional support from M&A advisors, tax consultants, and lawyers can significantly ease this process.
What Tax Considerations Should Be Taken into Account When Selling a Business in Saxony-Anhalt?
Selling a business has significant tax implications that can be optimized through early planning:
In an asset deal, i.e., the sale of individual company assets, profits are generally subject to income tax. However, under certain conditions, 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.
Saxony-Anhalt imposes a 5% real estate transfer tax rate, which is moderate compared to other states. This should be considered in real estate transactions within business sales, such as manufacturing companies with their own premises.
Establishing a holding structure before the sale can offer tax advantages and should be examined in advance. Utilizing reinvestment options under § 6b EStG can also reduce tax burdens.
In family-internal transfers, special benefits regarding inheritance and gift tax may apply. Under certain conditions, the transfer of business assets within the family can be largely tax-free.
Early consultation with specialized tax experts is essential to minimize tax liabilities when selling a business.
How Can Business Succession in Saxony-Anhalt Succeed Despite Demographic Challenges?
The demographic situation in Saxony-Anhalt, with the migration of younger skilled workers, presents particular challenges for business sellers but also offers specific solutions:
An early start to the search for successors beyond the region is advisable. Specialized brokerage platforms and M&A advisors can provide valuable support by targeting interested parties from other federal states or abroad.
The "Returnee Program Saxony-Anhalt" supports former residents who have gained professional experience elsewhere and wish to return home for business succession. This group combines regional ties with external expertise, making it an attractive option for sellers.
Cooperation with the state’s universities, especially Otto von Guericke University Magdeburg and Martin Luther University Halle-Wittenberg, can establish contacts with qualified graduates interested in entrepreneurship through business acquisition.
Attractiveness for non-local successors can be increased through targeted measures: highlighting the central location and excellent infrastructure, emphasizing relatively affordable residential and commercial real estate costs, and pointing out attractive funding opportunities for business takeovers.
A gradual handover with an extended familiarization period can lower barriers for potential successors and ensure knowledge transfer. Models such as temporary seller participation or advisory roles after the sale can enhance appeal for buyers.