Business Succession in Germany: Figures, Trends and Routes (2026)

According to the KfW Succession Monitoring 2025 (January 2026), around 545,000 owners of German SMEs plan to hand over their company by the end of 2029, about 109,000 per year; around 569,000 plan to close in the same period. The Institut für Mittelstandsforschung (IfM) Bonn instead estimates around 186,000 companies due for handover in 2026 to 2030. Both figures are correct, but they measure different things — more on that below.

How we guide owners through the handover is set out in business succession advisory for owners; the consolidated market overview is at Business Succession Germany.

The key figures at a glance

Metric	Value	Source, date
Medium-sized companies in the KfW universe	3.87 million	KfW Succession Monitoring, Jan. 2026
Planned handovers by end of 2029	around 545,000 (about 109,000 per year)	KfW, Jan. 2026
Planned closures by end of 2029	around 569,000 (about 114,000 per year)	KfW, Jan. 2026
Companies planning succession that have found a successor (base: companies with planned succession)	26 % (14 % negotiations concluded, 12 % in negotiation)	KfW, Jan. 2026
Owners aged 55 or older	57 %	KfW, Jan. 2026
Companies due for handover 2026 to 2030	around 186,000	IfM Bonn, Daten und Fakten No. 37 (2025)
Average asking-price expectation of sellers	around EUR 499,000 (median EUR 375,000), 34 % above 2019, about 9.5 % price-adjusted	KfW, Jan. 2026

The price expectation is a survey figure, not a market price and no indication of the value of any individual company.

Why do KfW and IfM Bonn report such different numbers?

Because they ask different questions. The KfW monitoring asks owners about their plans; its universe is 3.87 million medium-sized companies. The IfM Bonn estimates, using its own method in use since the mid-1990s, how many companies are due for handover — because no reliable official statistic on business succession exists. Placing the two figures side by side is therefore not a contradiction but a comparison of intention (KfW) and estimated handover need (IfM).

The IfM study adds: the number of handovers is stagnating even though owners are getting older. The institute attributes this to the weaker economic situation of companies, which makes a takeover less attractive. Most handovers fall in business-related services and in companies with EUR 500,000 to 1 million in annual revenue. Relative to the stock of companies, Lower Saxony is expected to see the most handovers.

Why do so many owners plan to close?

KfW names three frequent reasons for planned closures: reaching retirement age (52 %), lack of interest in the family (47 %) and administrative burden (42 %). A business that depends heavily on its owner is hard to hand to third parties, and closure then looks like the easier solution (IGCP assessment, not part of the KfW analysis).

Whether closure or sale is more economical depends on the case. A decision aid: Closure or Sale?. Transferability can be built but needs lead time: Preparing Succession.

Which routes do owners plan?

Among owners willing to hand over (multiple answers possible), KfW reports:

Route	Share of mentions
Family members	55 %
External sale	42 %
Employees (EBO)	28 %
Co-owners (MBO)	24 %

For family businesses, the IfM Bonn, evaluating studies of the past 40 years, finds just over half handed over within the family, about 17 % to employees and about 29 % to external parties; in the last 15 years family succession has lost a little ground. Where the family does not take over, an orderly sale process becomes more important. The options: Succession Options; targeted search: Finding a Successor.

How long does succession take?

The DIHK recommends starting the search for a successor at the latest three years before the handover (quoted in the KfW monitoring). A company sale itself typically takes 3 to 12 months according to IGCP's assessment, preparation included (practical assessment, not a statistic, no guarantee). Structural preparation, such as reducing owner dependency, often needs one to two financial years to show in the figures.

What does this mean for owners?

Three consequences. First: according to KfW only 26 % of companies planning a succession have found a successor (14 % negotiations concluded, 12 % in negotiation); preparation is the difference between intention and handover. Second: price expectations have risen, which says nothing about buyers' willingness to pay. A solid basis is a valuation using recognised methods; the company valuation calculator gives a first orientation. Third: the buyer pool is larger than the region — see foreign buyers.

Austria has its own figures and specifics: Business Succession in Austria. The tax side of a German handover is covered in Verschonungsregelung; the M&A market overall is put in context by M&A market Germany 2027.

FAQ

How many companies are handed over in Germany each year?

Depending on the source, around 37,000 per year (IfM Bonn: 186,000 companies due for handover in five years, divided by five arithmetically) or around 109,000 per year (KfW: owners' intentions to 2029). There is no official figure.

Does one in four companies really find no successor?

No, the figure cannot be read that way. KfW reports that 25 % of owners planned closure in 2025, partly for lack of a successor, partly deliberately for reasons of age. It is a warning signal, not fate: businesses that are transferable and enter a structured process early generally find interested parties.

Is handing over a small business worth it at all?

Often yes, if the business runs without its owner and expectations are realistic. Closure destroys customer base and jobs without replacement. We are happy to review figures and process together.

The best succession starts years before closing. Talk to IGCP Capital Partners GmbH early and in confidence — independent, discreet, at eye level. → igcp.at