Business Succession Without Family: Paths to External Succession

No child who wants to take over. No partner in management standing ready. For most owners, this is the situation today.

How we guide owners through business succession — from the first decision to the handover — is set out on our services page.

Family-internal succession has become the exception. In most businesses the next generation will not come from the owner's own family. That is not a failure — it is the normal case.

External succession means: the company passes to someone outside the family. To your own management, to an external manager, to a strategic buyer or to an investor. Which route fits is decided not by chance but by an early and honest stocktaking.

Why is external succession the normal case?

External succession is the normal case today because the next generation comes ever less often from the family: the children have taken their own paths, do not want the responsibility, or the professional fit does not match the task. The result is the same in every case — the owner must find a solution outside the family.

The trend is documented: according to the surveys by BMWET and KMU Forschung Austria, only around half of handovers now take place within the family, with a falling trend. The earlier an owner accepts this, the more options stay open. Succession is not an emergency — it is a guided process with lead time.

What four routes of external succession are there?

Four routes are open: takeover by your own management (MBO), the entry of an external manager (MBI), the sale to a strategic buyer or the sale to an investor. Which fits depends on your goals — highest price, continuity, a fast or a gradual exit.

Route	Who takes over	Fits when
MBO	own management team	strong internal team, continuity matters
MBI	external manager	no internal successor, but suitable entrepreneur available
Strategic buyer	company from the industry	highest price, integration acceptable
Investor	investment company / family office	gradual transition over several years

In a management buy-out (MBO) the existing management team takes over — discreetly and with high continuity; the challenge almost always lies in the financing. In a management buy-in (MBI) an external manager buys in; success stands or falls with the person. A strategic buyer from the industry often pays the highest price, because the company is worth more in their hands — through access to customers, technology or new markets; in return, more usually changes after closing. An investor often takes over with the management on board and suits a gradual transition over several years.

The differences between the management routes are deepened in „MBO vs. MBI"; when a strategist and when an investor fits better, in „Strategic Buyer or Financial Investor?".

How do I find an external buyer for my company in Germany?

Owners in Germany find an external buyer through the nexxt-change succession exchange, through an M&A adviser with its own buyer network, or by approaching their industry network directly and discreetly. According to the IfM Bonn meta-analysis, around 29 percent of transfers have so far gone to outsiders.

The four routes above say who takes over the company; this section is about how you find buyers.

Search channel	How it works	Fits if
nexxt-change	Internet platform of the Federal Ministry for Economic Affairs and Energy (BMWE), KfW, DIHK, ZDH, BVR and DSGV; regional partners such as chambers, cooperative banks and savings banks support the brokering of contacts	you accept an open listing and want to test the response first
M&A adviser	anonymous short profile, discreet approach from the adviser's own buyer network, several parties in parallel	confidentiality and price discovery through competition matter more than an open listing
Industry network	direct approach to suppliers, customers and competitors	a strategic buyer is obvious and you can lead the contact yourself

As of 30 October 2026: according to the platform notice of 18 August 2026, operation of nexxt-change is moving from the BMWE to KfW; the new version nexxt change 2.0 is expected in autumn 2026.

Sources: nexxt-change.org, "Über die Börse nexxt-change" and the platform notice "Überarbeitung und Betreiberwechsel der Plattform nexxt change", both German-language and retrieved 30 October 2026; IfM Bonn, Daten und Fakten No. 37, "Unternehmensnachfolgen in Deutschland 2026 bis 2030", 2025, retrieved 30 October 2026. The rows on M&A advisers and industry network are IGCP's practical assessment, not statistics.

The company valuation calculator gives a first indication of value before any approach to buyers. IGCP Capital Partners GmbH (Investment Growth Capital Partners) is an independent M&A advisory firm based in Vienna, founded in 2011, supporting the external succession of owner-managed companies with annual revenue of EUR 0.3 to 30 million in Germany, Austria and Switzerland.

How much time does an external succession need?

An external succession needs lead time: a sale process typically takes 3 to 12 months, preparation included (IGCP's practical assessment, no guarantee); the period of consideration beforehand comes on top. The work on sale-readiness, such as reducing dependence on the owner, ideally begins years earlier.

The company must become less dependent on the owner, the figures must be robust, and the right successor must first be found. Those who force this under time pressure sell worse. The full process is shown in „The Five Phases of Succession", the question of the starting point in „The Right Time".

What lowers the value most in a succession?

The costliest factor in an external succession is dependence on the owner: if the company does not function without them, a successor buys a risk, not a company. If all customer relationships hang on the owner and only they make every decision, this depresses the price or prevents the sale entirely.

The good news: this can be worked on. Distribute responsibility, build a second management level, document processes — this is the most effective value increase before a succession, and it takes time. That is exactly why the early start.

How do you approach it?

First clarify your goal — highest price, continuity or gradual exit —, honestly assess the dependence on you personally, and obtain an independent assessment early of which of the four routes realistically fits your business.

Tax and legal questions belong in the hands of your tax adviser and lawyer. The strategic question — to whom and how you hand over — is best clarified with an independent M&A adviser.

The best succession begins years before closing. Talk early and confidentially with IGCP Capital Partners — independent, discreet, on equal terms. → igcp.at

Frequently asked questions

What does external succession mean?

External succession describes the handover of a company to someone outside the family — to your own management (MBO), an external manager (MBI), a strategic buyer or an investor. It is the normal case today.

What can I do if there is no family-internal successor?

Then external routes come into play: sale to strategists or investors, an MBO by the management or an MBI by an external manager. The overview is given in „Succession Options".

How do I find a successor if no one from the family takes over?

Through several search channels, depending on your goal: the nexxt-change succession exchange as an open option with a listing, an independent M&A adviser who approaches suitable candidates — managers, strategists or investors — in a targeted and discreet way, or a direct approach within your industry network. The key trade-off is an open listing versus confidentiality; details are in the section "How do I find an external buyer for my company in Germany?" above. More on this: „Finding a Successor".

How long does an external business succession take?

A sale process typically takes 3 to 12 months, preparation included (IGCP's practical assessment, no guarantee); the period of consideration beforehand comes on top. The work on sale-readiness — making the company less dependent on the owner — should ideally begin years earlier.

What lowers the value most in a succession?

Dependence on the owner. If customer relationships, knowledge and decisions hang solely on the person of the owner, a successor takes on a risk. A second management level and documented processes increase the value noticeably.