Sector

Succession in the crafts: handing over or taking over a business

Succession in the German crafts sector has its own rules. What the master craftsman requirement means, who advises you and how a takeover is financed.

As of October 2026 · An overview, not legal or tax advice.

In short

Just over a million businesses are registered in the German crafts sector. According to the German Confederation of Skilled Crafts (ZDH), at least 125,000 family businesses will be looking for a successor over the next five years. The biggest hurdle is finding suitable successors at all.

You don't have to be a master craftsperson yourself to take over a craft business. In licensed trades, though, the business needs a qualified technical manager. The chamber of crafts can advise you; KfW development loans and guarantee banks help with financing.

  1. 01

    Master craftsman requirement and the technical manager model

    The German Crafts Code distinguishes licensed trades (Annex A), such as electrical, plumbing and heating or motor vehicles, from licence-free trades (Annex B1). The master's requirement only applies to Annex A. At the end of 2025 that covered around 641,000 of just over 1.03 million businesses.

    A business is registered if its technical manager meets the requirements (§ 7 of the Crafts Code). So as an owner without a master's certificate, you can employ a master craftsperson as technical manager. This person must be permanently employed and actually lead the work on working days. A name on paper is not enough.

    There is also a practising licence for experienced journeymen and an exemption granted by the chamber. Clarify early with your chamber of crafts which route fits.

    § 7 HwO (in German) · Federal portal: technical manager (in German) · HWK Kassel (in German)

  2. 02

    Succession advice from the chamber of crafts

    Every chamber of crafts (Handwerkskammer) has business advisers who help with the handover: when and to whom to hand over, valuing the business and searching via business marketplaces. For valuation they often use the AWH method, a valuation approach widely used in the crafts.

    In a ZDH survey, owners named their tax adviser as the first point of contact, but chamber and association services were also widely used and mostly rated well. What works: combine both and start early.

    • Clarifying timing and preferred solution
    • Getting a valuation of the business
    • Listing the business anonymously on a marketplace
    • Questions about the crafts register when the owner changes

    ZDH: succession survey (in German) · ZDH: succession (in German)

  3. 03

    Typical business sizes

    The crafts sector is made up of small units. Around 1.04 million businesses with around 6 million employees together works out at roughly six people per business. Many are much smaller, some much larger.

    For an outside buyer, the most interesting businesses are those that can run without the owner: with their own team, regular customers and stable processes. Very small businesses often depend heavily on one person and tend to be handed to family or employees. Our focus is owner-managed businesses with around 5 to 100 employees.

    ZDH: key figures 2025 (in German) · ifh Göttingen: handovers to 2030 (in German)

  4. 04

    Financing: KfW and guarantee banks

    KfW's ERP loan for start-ups and succession finances up to 500,000 euros and at most 35 per cent of eligible costs. Your bank is fully covered by a guarantee bank. You apply through your own bank.

    If collateral is missing, the guarantee banks of the German states can back loans. The guarantee bank in North Rhine-Westphalia, for example, offers a dedicated succession guarantee covering 50 to 80 per cent and up to 2 million euros. Terms differ by state; you'll find your state's development and guarantee banks on our regional pages.

    A vendor loan often completes the financing: the previous owner defers part of the price. That shows the bank she believes in the succession.

    KfW 077 (in German) · KfW product info 077, PDF (in German) · Bürgschaftsbank NRW (in German)

Further reading

Frequently asked questions

Can I take over a craft business without a master's certificate?

Yes. Licence-free trades need no master's certificate. In licensed trades, a qualified technical manager has to lead the work, for example an employed master craftsperson.

How many craft businesses are looking for a successor?

According to the German Confederation of Skilled Crafts, at least 125,000 family businesses will be looking for a successor over the next five years, within the family, among employees or externally.

What does the chamber's succession advice cost?

Each chamber sets its own terms. Ask your chamber of crafts about the conditions for a first meeting, valuation and support.

What funding is available for taking over a craft business?

Mainly KfW's ERP loan for start-ups and succession of up to 500,000 euros, plus programmes from state development banks and guarantees from guarantee banks. Everything goes through your own bank.

What is the AWH method?

A method for valuing craft businesses that advisers in the crafts organisations often use. It is based on the earnings the business can generate in future.

What's your next step?

For ownersFor successorsSuccession check

Sources