By the end of 2029 around 545,000 owner-led companies in Germany are looking for a successor — some 109,000 per year. For the first time, more owners are planning to wind down than to hand over in an orderly way. Those who plan early protect jobs and value.
By the end of 2029, around 545,000 owner-led companies want to arrange a succession — some 109,000 per year. At the same time, roughly 114,000 owners a year are considering withdrawing without any succession solution at all. For the first time, more companies are planning a closure than an orderly handover (source: KfW SME Succession Monitoring 2025). Shortages of skilled staff and of buyers make the situation more acute.
In Germany, too, several routes lead to a handover:
The right route depends on goals, profitability and the successor situation. If no family solution is possible, see Succession without a family successor.
On a paid transfer, share deal and asset deal are to be distinguished. If a private individual sells GmbH shares held privately (from a 1 percent stake), the partial income method applies: 60 percent of the gain is taxable, 40 percent is exempt. Details: Selling a GmbH — taxes.
On a gratuitous transfer (gift or inheritance), inheritance and gift tax applies — here the relief scheme for business assets (§§ 13a, 13b ErbStG) can exempt a large share, provided requirements such as payroll and holding periods are met.
This guidance is no substitute for tax or legal advice; please involve your tax advisor and lawyer.
Succession is a process spanning years. Several years of lead time increase the chances of an orderly handover and a good price. The phases range from preparation and valuation through the search for a successor and negotiations to the handover.
In detail: The five phases of an orderly succession.
Key points of contact are the nexxt-change succession exchange (run by BMWK and KfW), the Chambers of Industry and Commerce (IHK) and the Chambers of Skilled Crafts (HWK), as well as KfW with its succession monitoring.
IGCP Capital Partners supports owners in Germany independently and discreetly through the entire succession process — from valuation and buyer search to closing.
Service overview: Business succession services.
If you are considering succession in Germany, talk to us confidentially and without obligation.