Take over or start a company: What's a better fit for you.

When you take over a company, you start with customers, a team and revenue. When you start a new one, you start with an idea. Both are forms of entrepreneurship. But they are two very different jobs. Here is the honest comparison.

The key points in brief.

• An acquisition has less market risk, but more responsibility from day one.
• A startup gives you more freedom, but often takes years to become profitable.
• For an acquisition you usually need a loan. For a startup you often need investors.
• The deciding factor is whether you prefer to invent something new or improve something that exists.

The comparison.

• Customers. Starting new: you have to win them. Taking over a company: they are already there.
• Team. Starting new: you have to build it. Taking over a company: it is already established.
• Revenue. Starting new: often only after years. Taking over a company: from day one.
• Financing. Starting new: own funds, angels, VC. Taking over a company: bank loan, grants, vendor loan.
• Shares. Starting new: you lose some with every funding round. Taking over a company: you usually own them all.
• Freedom. Starting new: total. Taking over a company: within an existing business.
• Biggest risk. Starting new: no market. Taking over a company: leadership, hidden problems.

When an acquisition is a better fit.

When you are ready to take responsibility for people, enjoy selling and improving things, and do not want to go for years without an income. And when you are drawn to a company that works, but has not been modernised in years. That is exactly where you will find the quickest wins: digitalisation, sales, pricing.

When a startup is a better fit.

When you have a specific idea for something that does not exist yet. When you are aiming for very high growth and are willing to give up shares and take risks to achieve it.

What an acquisition costs.

Small businesses are often valued based on the ratio of purchase price to revenue or profit. According to an analysis by KfW (Germany's state development bank), construction and trade businesses with less than 20 million euros in revenue usually sell for only 0.25 to 0.5 times their annual revenue. Across all industries, the median is 0.6 (KfW Nachfolge-Monitoring 2025 (KfW Succession Monitoring 2025)). This is often cheaper than many founders think.

Typical mistakes in acquisitions.

• Only looking at the numbers. Whether the team will follow you is just as important as the balance sheet.
• Changing things too quickly. In the first few months, listen first, then act.
• Underestimating the dependence on the owner. If all customers only know the boss, you need a long handover period.
• Not using professionals for the checks. Tax advisors and law firms will save you a lot of money later on.

The mymuesli comeback also shows why the first few months are mainly for listening: first understand the DNA, then make changes.

Checklist: Are you ready?

• I want to take responsibility for an existing team.
• I can imagine moving or commuting for it.
• I have some capital of my own or can raise it.
• I prefer improving things to inventing from scratch.
• I can listen before I make changes.

Three or more ticks? Then you should seriously consider an acquisition. Read more in our guide to starting a business through acquisition.

Take over instead of starting from scratch? Take a look at the Nachfounder programme.