Business succession: finding the right successor.
In short: If there is no successor within the family, IGCP Capital Partners, based in Vienna, advises owners in Austria, Germany and Switzerland on external succession – from valuation and the discreet search for a buyer, management buy-in candidate or investor through to closing. Independent, with a focus on the sell side; buy-side mandates only on behalf of the buyer, for companies with EUR 0.3 to 30 million in annual revenue.
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- More than 15 years advising owner-managed companies in the German-speaking region
- Over 100 completed transactions
- 100 % independent — no bank, no fund
- Confidential from the first conversation
For most owners, business succession is the most important entrepreneurial decision of their lives. It affects life's work, employees, customers and family at the same time. In the DACH region tens of thousands of owner-led companies will face exactly this task in the coming years — and in many cases an internal family solution is no longer realistic.
IGCP Capital Partners has been guiding entrepreneurs through succession for more than 15 years. Across more than 100 transactions we have found successors, structured handovers and led owners through complex negotiations — discreetly, independently and on equal footing. This page gives an overview of the routes, the process and the right timing for an orderly succession.
IGCP advises on the sale and external succession of owner-managed and niche companies with EUR 0.3 to 30 million in annual revenue in Austria, Germany and Switzerland — across all sectors, with a focus on the sell side (buy-side mandates only on behalf of the buyer) and no investment interests of our own. According to IGCP Capital Partners' assessment, a company sale typically takes 3 to 12 months, preparation included (practical assessment, not a statistic, no guarantee).
Advisory region: Germany, Austria and Switzerland.
IGCP Capital Partners advises owners across the entire DACH region — in Germany, Austria and Switzerland. The mandate profile covers owner-managed and niche companies with EUR 0.3 to 30 million in annual revenue. Advice focuses on the sell side (buy-side mandates only on behalf of the buyer), independently and without any investment interests of our own. Legal and tax questions of the respective jurisdiction are developed together with the client's tax advisers and lawyers.
In brief: How common are business handovers in Austria?
In Austria, 8,202 business successions took place nationwide in 2025, 5.3 percent more than the year before; since 2021, more than 37,000 businesses have been passed on to the next generation. By 2034, around 52,500 employer businesses are due for handover across Austria, about 23 percent of all companies (excluding one-person companies), with around 705,000 jobs attached.
Routes to succession
There are essentially three main routes for passing a company into new hands. Which one is right depends on size, sector, owner goals and the availability of suitable people.
Family-internal succession. Handing over to the next generation is emotionally natural, but only works if successors are available, qualified and genuinely willing. Where this is not the case, the family should talk openly about external solutions — the earlier the better.
Management Buy-out (MBO) or Management Buy-in (MBI). In an MBO the existing management takes over, in an MBI an external manager steps into the owner role. Both preserve continuity but require a viable financing structure. Differences, opportunities and pitfalls are covered in our article MBO vs. MBI. Financing, valuation and the contract package for this route are covered under Management buy-out.
Sale to a strategic buyer or investor. Strategics from the same or an adjacent sector often pay higher prices because they can realise synergies. Financial investors often offer more flexibility on the seller's role and the transition. The two routes are not mutually exclusive — both are tested in parallel in a structured process.
How do I take over an existing business?
Business succession means taking over an existing business rather than starting a new one: the customer base, employees and suppliers are already there. The task is to examine, value and finance it.
Finding a successor in seven steps
You find a successor in seven steps: clarify your goals, make the business ready for handover, write a requirements profile, use several search channels in parallel, approach candidates anonymously, vet serious buyers rigorously and negotiate the handover in a structured process.
1. Clarify your goals
Full or partial sale, an immediate or gradual exit, the highest price or continuity for your life’s work: these choices determine whom you seek. Looking for just any successor is not a clear search.
2. Make the business ready for handover
Delegate responsibility, document knowledge and prepare reliable numbers so the business can operate without its owner. This takes the longest and should start first.
3. Write a requirements profile
Define the required expertise, leadership experience, equity, timeframe and values. A clear profile avoids accepting the first interested party or searching for a perfect candidate who does not exist.
4. Use several search channels in parallel
One channel is hope; several make a search. The next section compares the channels available in Austria and Germany.
5. Approach candidates anonymously
Release a neutral short profile first, then sign a confidentiality agreement before sharing names and numbers. Premature disclosure unsettles employees, customers and suppliers.
6. Vet candidates rigorously
Ask for proof of equity and a financing concept, assess leadership ability and commitment, and keep two to three serious candidates in parallel. Repeatedly postponed meetings and unread documents are warning signs.
7. Negotiate and hand over in a structured process
Guide price, payment structure, transition and liability from the letter of intent to the contract. Payment security and handover terms matter alongside the purchase price.
Selling to an external successor typically takes 3 to 12 months including preparation, according to IGCP Capital Partners' practical experience (not a statistic, no guarantee).
Search channels in Austria and Germany compared
Channels differ mainly in reach, discretion and whether candidates are screened in advance. In practice, several are used in parallel.
| Channel | Austria | Germany | Reach | Discretion | Screening |
|---|---|---|---|---|---|
| Own network (suppliers, customers, industry contacts) | Own contacts | Own contacts | limited | high | none |
| Tax advisers, banks, lawyers | Professional and bank contacts | Professional and bank contacts | medium | high | partial |
| Chambers | WKO succession exchange, advice from the economic chambers | nexxt-change (backed by the German Federal Ministry for Economic Affairs, KfW and the chambers), IHK and HWK | broad | low to medium | none |
| IGCP succession exchange (free, anonymous, moderated) | Succession exchange Austria | Succession exchange Germany | broad | high | yes (every listing and enquiry is checked) |
| Targeted approach by an M&A adviser | Longlist, anonymous approach | Longlist, anonymous approach | targeted | high | yes |
The process in five phases
An orderly succession follows a clear path. We structure it in five phases: standpoint check and valuation, preparation of sale materials, discreet outreach to suitable candidates, negotiation and contract, handover and closing. Each phase has its own decision points — and in each phase the quality of the outcome for owner, employees and buyer is determined.
A detailed description with timelines and typical pitfalls is available in our article Business succession: the five phases of an orderly handover.
In all phases the same applies: discretion protects enterprise value. We work consistently with anonymised documents, NDAs and tight control of information flows — towards employees, customers and competitors.
Business succession in Austria: trade licence, notarial deed and taxes
For Austrian businesses the succession question is no less pressing than in Germany: according to calculations by the Austrian Economic Chamber, around 51,500 small and medium-sized enterprises are due for handover between 2020 and 2029. The process logic is universal, but some particularities shape timeline and net result. The trade licence (Gewerbeberechtigung) is personal and does not pass automatically to the successor, who needs a licence of their own or appoints a licensed managing director. GmbH shares are transferred by notarial deed (§ 76 para. 2 GmbHG) and the change is registered in the Firmenbuch; employment relationships transfer under § 3 AVRAG.
On the tax side, owners who have reached the age of 60 and cease their active working life can tax the gain from selling a sole proprietorship or partnership interest at the half rate under § 37 para. 5 EStG, provided seven years have passed since the business was founded or acquired; alternatives are a EUR 7,300 allowance or spreading the gain over three years. Gains on GmbH shares held privately are taxed at the special rate of 27.5 %. Austria abolished inheritance and gift tax in 2008, so an intra-family handover triggers no gift tax, but a notification duty and — for business real estate — real estate transfer tax with a conditional allowance apply. Tax structuring belongs to the tax adviser; we make sure it is reflected in timeline and negotiation. See also business succession in Austria and our guide to handing over a business in Austria.
The right time
The most common mistake is to start too late. Those who sell for health reasons or under time pressure lose negotiating power — and usually price as well. Conversely, preparing for succession mentally long before it is concrete never hurts.
Four signals that point to starting soon are described in The right time for succession. These include a stable business performance, a favourable valuation environment and the personal readiness to let go.
Tax and legal aspects are a key part of every succession. These topics are handled together with the client's tax advisor and lawyer — IGCP runs the economic and strategic steering of the process, not the tax or legal advice.
Frequently Asked Questions
- How do I find a successor for my company?
- Through three routes: internally (family or existing management), externally through an individual (management buy-in), or externally through a company (sale to a strategic buyer or investor). Search in parallel through your own network, tax advisers and banks, succession exchanges such as nexxt-change, the WKO succession exchange or the IGCP succession exchange, and confidential outreach by an M&A adviser. A clear requirements profile and several candidates to choose from are essential.
- How many candidates should I evaluate in parallel?
- Two to three serious candidates are ideal: enough competition to support your negotiating position, but few enough for thorough assessment. A single candidate knows their position and negotiates accordingly.
- How long does a business succession take?
- According to IGCP Capital Partners' assessment, a company sale typically takes 3 to 12 months, preparation included (practical assessment, not a statistic, no guarantee). Twelve to twenty-four months of advance work to improve value are recommended separately and are not included in this duration. Preparation — numbers, valuation, clarifying your own goals — often takes as long as the actual sale or transfer process. Starting early gives more room to choose the successor and to set the price.
- How do I find a successor outside the family?
- Options include the existing management (MBO), external managers (MBI), strategic buyers in the sector and financial investors. The right route depends on company size, industry, employee structure and your personal goals. A structured process identifies several suitable options in parallel — improving negotiating position and outcome for everyone.
- What does M&A advisory cost?
- Typically a manageable retainer combined with a success fee payable only on closing. The amount depends on transaction size and complexity. For a concrete quote we get to know your company in a confidential first meeting — free of charge and without obligation.
- What tax reliefs apply when handing over a business in Austria?
- Owners aged 60 or older who cease their active working life can tax the gain from selling a sole proprietorship or partnership interest at the half rate under § 37 para. 5 EStG, provided the business has existed for seven years since foundation or acquisition. Alternatives are a EUR 7,300 allowance or spreading the gain over three years. Gains on privately held GmbH shares are taxed at 27.5 %. Austria has no inheritance or gift tax since 2008; real estate in the business remains subject to real estate transfer tax. Your tax adviser assesses the individual case — before the handover, not after.
- Do you also advise in Switzerland?
- Yes. IGCP Capital Partners advises across the entire DACH region — in Germany, Austria and Switzerland. The firm is headquartered in Vienna. The tax and legal implementation is carried out together with the client's local advisers in each case.
- What happens to businesses after a handover?
- According to KMU Forschung Austria data cited by the WKO, 61 percent of acquired businesses increase their revenue, 60 percent invest more and 36 percent create additional jobs (WKO Vorarlberg, updated 25 August 2026, retrieved 6 October 2026). These are averages across takeovers in Austria, not a forecast for an individual business.
- Which succession solution do owners prefer most often?
- According to KfW Research, 55 percent of former owners with a current succession plan wish for a handover within the family; 42 percent of those planning a succession consider an external handover or a sale to outsiders, 28 percent of companies a succession by employees (employee buy-out) and 24 percent of owners an arrangement through co-owners (management buy-out). Multiple answers were possible; the data refer to German Mittelstand companies (KfW Research, Fokus Volkswirtschaft No. 526, 9 January 2026, retrieved 6 October 2026).
If you are thinking about succession, talk to us confidentially and without obligation.