Finding a successor: How to pass your business into good hands.

If no one in your family is taking over, there is another way: an external successor who wants to continue your business. More and more founders and experienced managers are looking for exactly this kind of opportunity. This guide shows how you can find each other.

The key points in brief.

• Start early. A good succession usually needs several years of lead time.
• Make your business visible, especially to a younger generation.
• Besides the purchase price, pay attention to the personal fit.
• Plan a handover in stages, where you stay on board for a while.

You are not alone.

This issue affects a great many businesses. In 2023, almost one in three business owners was 60 or older, while only one in ten was under 40 (KfW, Germany's state development bank). Meanwhile, one in four companies in the German Mittelstand plans to close down after the senior generation retires (KfW, January 2026). This often happens even though the company is doing well. It does not have to be this way.

Step 1: Get clear about what you want.

Before you start looking, answer three questions for yourself:

• What should stay? The name, location, team, values?
• What can change? Processes, products, markets?
• What role do you want afterwards? To leave completely, be a consultant, or join the advisory board?

These answers will later be more important than any valuation.

Step 2: Make the company ready for handover.

Successors will take a close look. It helps if:

• the figures for recent years are neatly prepared,
• not all customer relationships depend solely on you,
• important processes are documented,
• contracts, leases and permits are in order.

Step 3: Become visible.

The next generation does not look in trade directories. They search online, in networks and through recommendations. That is why it pays to show the company as it really is: the workshop, the products, the team, your story. A short video often says more than any brochure. And it remains confidential until you decide who gets to see it.

Other routes include chambers of commerce, your own bank, tax advisors, succession platforms and programmes that specifically prepare successors.

Step 4: Get to know each other before negotiating.

Hold several conversations, show them the company and offer a trial period. Two or three weeks together in the daily routine reveal more than ten meetings. Pay attention to whether the person treats the team with respect and whether they understand your customers.

Step 5: Price and financing.

The purchase price is often the most difficult point. A realistic valuation by professionals and flexible models can help. One example is a vendor loan: You defer part of the purchase price, and the successor pays it off from the company's profits. This makes many acquisitions possible in the first place and shows that you believe in the future of the business.

Step 6: Hand over in stages.

Most handovers are more successful if the previous owner stays on for a while. You can introduce customers and partners, pass on knowledge and gradually step back.

Are you looking for someone to carry on your work? Talk to us confidentially. The first conversation is free.