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

In Germany, around 545,000 owners of small and medium-sized enterprises want to hand their company to a successor by the end of 2029 — about 109,000 per year. For the first time, even more owners — 569,000 — plan to close their business instead. So the KfW Succession Monitoring 2025. Germany is not just handing over — it is increasingly closing down.

How many companies are looking for a successor?

Around 545,000 by the end of 2029, across all industries and regions. The cause is demographics: the founder generation of the 1980s and 1990s is reaching retirement age together, while smaller birth cohorts and changed founding behaviour shrink the number of potential successors.

For owners, this means soberly: it is a buyer's market. Successors and acquirers can choose from a historically large supply — and they choose the prepared businesses.

Why do so many owners plan to close?

One in four owners wants to close the business upon retirement instead of handing it over. Behind this are three patterns: no successor in sight (neither family nor external), a business too dependent on its owner to be transferable — and price expectations the market does not confirm. The KfW monitoring notes that sellers' price expectations have risen sharply recently.

A substantial share of these closures is avoidable. Transferability can be built — but not in three months: Preparing Succession.

Which routes does succession take in Germany?

The same as everywhere, only under sharper competition: family handover, sale to employees (MBO), takeover by external managers (MBI), or sale to strategics and investors. As family successions become rarer, the share of external solutions grows — and with it the importance of a professional sale process.

The options at a glance: Succession Options. How to find a successor deliberately: Finding a Successor.

What does this mean for owners concretely?

Three consequences: First, preparation decides — in a buyer's market, those with clean numbers, documented processes and low owner dependency prevail. Second, the price needs a solid basis instead of a wish figure; risen expectations meet selective buyers. Third, looking beyond the region and the border pays off — the buyer pool is larger than most owners assume: foreign buyers.

For handovers in Austria, the figures and specifics are here: Business Succession in Austria.

By when should I address succession in Germany?

Three to five years before the planned handover — for retirement handovers, at the latest around your 60th birthday. Structural preparation needs one to two financial years to show in the books; the handover or sale process itself takes 6 to 12 months in the market.

Does one in four companies really find no successor?

The KfW figure says: one in four owners plans closure — partly for lack of a successor, partly deliberately. 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. The alternative, closure, destroys customer base, jobs and life's work without replacement. Whether sale or closure is more economical: Closure or Sale?

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