Business Succession

What is Business Succession?

An alternative to starting a new business is the takeover of an existing company. In a succession, the company is transferred as a brand—including employees, inventory, and customer base—to a new owner. The takeover typically occurs through business purchase, unless the company is inherited or transferred through a gift.

Small and medium-sized enterprises (SMEs) are particularly frequently transferred through business succession. According to a study by KfW Mittelstandsbank, approximately 560,000 of the roughly 3.8 million medium-sized companies are seeking a successor by the end of 2026.

Advantages Over Starting a New Business

  • Proven business model with established structures and processes
  • Existing suppliers and partnerships
  • Established employee and customer base
  • Immediate revenues from day one
  • Better financing options through available financial statements
  • Improved creditworthiness for further investments

What You Should Consider

  • With a new startup, you decide everything alone—with a takeover, two parties must always agree (except in cases of inheritance)
  • You immediately assume responsibility and must lead a team that has known each other for a long time
  • Leadership skills are required from the start

The Succession Process

1. Preparation

Business succession is a long-term process—start early.

  • Define your search profile: industry, region, company size
  • Check for special requirements or necessary qualifications
  • Ideally, bring leadership experience and equity capital
  • Create a candidate profile for potential sellers

2. The Takeover

  1. Initial contact – First meeting of both parties
  2. Due diligence – Thorough review in economic, legal, tax, and financial terms
  3. Business valuation – Using various methods and experienced consultants
  4. Negotiation and purchase price determination
  5. Legal and operational transfer of the business

3. The Continuation

  • Utilize the outgoing owner's expertise after the purchase
  • Evaluate which existing concepts can be successfully continued
  • Develop new approaches to ensure long-term success

Useful Resources

nexxt-change is Germany's largest succession marketplace and offers companies from various industries seeking successors: www.nexxt-change.org

Our premium partners and partners can support you in your endeavor. We are happy to connect you with our succession experts.