Founding through acquisition: How to start with customers, a team and cash flow.
Start a business without starting from scratch: How you as a founder can take over, finance and develop an existing company.
Founding through acquisition means you do not build a new company from scratch. Instead, you take over an existing one and develop it further. Internationally, this is known as Entrepreneurship Through Acquisition, or ETA for short. This path to entrepreneurship, through buying and growing existing companies, is increasingly seen as a real alternative to the classic startup model (WHU).
The key points in brief.
- You take over a company that already has customers, a team and revenue.
- In Germany, hundreds of thousands of German Mittelstand (small and mid-sized companies) are currently looking for a successor.
- Financing is usually done through banks, promotional loans and vendor loans, not venture capital.
- The biggest levers after the takeover are sales, digitalisation and leadership.
Why now.
The figures are clear. By the end of 2029, around 545,000 SMEs want to arrange their succession. That is a good 109,000 per year (KfW, Germany's state development bank, January 2026). At the same time, for about 569,000 companies, no one is planning to continue the business. This means that for the first time, there are more companies looking to close than to hand over.
KfW itself states the reason. There are too few founders coming through who are qualified to take on a succession (KfW Research).
For you, this means there are many good companies and little competition for them.
What makes a startup different from a takeover.
With a startup, you first look for a problem, then a product, then customers. It often takes years for the business to become self-sustaining. With a takeover, the product-market fit has long been established. Your task is different. You have to win the trust of the team and customers and then develop the business further.
The risk shifts. Instead of asking, 'Does anyone actually want this?', the question becomes, 'Can I lead this and make it better?'.
Who this is for.
This path is a particularly good fit for three groups:
- Founders who want to get started as entrepreneurs but do not want to spend years without revenue.
- Ex-founders who have already built or sold a startup.
- Managers who have run someone else's company for a long time and now want their own.
Industry knowledge is helpful, but not essential. The company brings that with it, and most owners stay on in an advisory role for a while.
How a takeover works.
- Define your search profile: industry, region, size, price range, your role.
- Find companies: Many good businesses are not advertised anywhere. Chambers of commerce, your own bank, tax advisors and specialised programmes are the most important sources.
- Getting to know them: conversations, visits, ideally a trial period at the company. This is where you decide if it is a good personal fit.
- Due diligence: figures, contracts, customer dependencies, condition of the assets. With your tax advisor and law firm.
- Financing: purchase price, equity, bank loans, grants, vendor loan.
- Handover: ideally in stages, with a clear 100-day plan.
How much money do you need.
Less than many people think. The average asking price from owners for takeovers until 2029 is around 499,000 euros (KfW Nachfolge-Monitoring 2025 (Succession Monitoring)). A portion of this typically comes from your own equity. The rest comes from bank loans, funding programmes and a vendor loan, where the previous owner defers part of the purchase price.
A recent case shows that an entrepreneurial spirit is also needed in established companies: The mymuesli comeback.
Search fund, individual purchase or programme.
The best-known ETA model is the search fund. Investors finance the search and later the purchase. In Europe, search funds and related models are gaining in importance. Besides these, there is the self-funded purchase and programmes like Nachfounder, which prepare you, connect you with suitable companies and support you until the handover.
Do you want to take over a business instead of starting from scratch? Apply for the next cohort.
FAQ
Frequently asked questions
What does founding through acquisition mean?
You take over an existing company and develop it further as the owner, instead of building a new one. Internationally, this is known as Entrepreneurship Through Acquisition, or ETA for short.
Do I need industry experience?
No. An entrepreneurial mindset counts for more. The expertise is in the team, and the owner usually stays on board for a while.
How much equity do I need?
That depends on the purchase price. Often a smaller portion is enough. The rest is financed through the bank, promotional loans and vendor loans.
Is a takeover less risky than a startup?
The market risk is lower because customers and revenue are already there. In return, you need to be diligent with your checks and leadership.
How do I find a suitable company?
Through chambers of commerce, banks, tax advisors, succession marketplaces and specialised programmes. You often find the best companies through personal contacts.
