Business succession in the German Mittelstand

The four realistic paths

• Family succession — increasingly rare; works only when the successor genuinely wants the operational role
• Management buy-out — good cultural fit, usually limited by the management team's financing capacity
• Strategic buyer — often the highest headline price, frequently combined with integration and site consolidation
• Financial buyer / permanent capital — continuity of team and brand, price driven by sustainable earnings

Why timing decides the price

Value in this segment is mostly a function of how independent the business is from its owner. A company where the owner still signs every quote and holds the key customer relationships personally is worth materially less than the same company with a second management layer.

That gap can be closed — but it takes 12 to 24 months of deliberate work. Owners who start the conversation three years before their intended exit have options; owners who start three months before mostly have one.

A realistic timeline

• 36–24 months before exit: reduce owner dependency, clean up reporting, document processes
• 24–12 months: resolve legal and tax structure questions with your advisors
• 12–6 months: approach buyers; a direct buyer can move from first call to signing in about three months
• After signing: transition period, typically 6–24 months if desired

Our buy-box in plain numbers

We only look at companies that fit a narrow, published profile. If your business matches it, a General Partner gets back to you personally with a qualified reply. If it does not, we say so instead of running a process.

• EBITDA between EUR 0.5m and EUR 5m, sustainable and documented
• B2B services: facility management, staffing and personnel services, IT services and managed services, logistics services
• Recurring or contract-based revenue, diversified customer base
• Germany-wide — headquarters in Hamburg, deals nationwide
• Majority stakes; full exit or staged handover both possible
• Not in scope: B2C retail, pure consulting built around one person, pre-revenue or turnaround situations

Questions and answers

How long does a succession sale take?

A broker-led process usually runs 9 to 18 months. A direct sale to a buyer with committed capital can close in about three months once the seller is ready.

What reduces the value of my company most?

Owner dependency and customer concentration. Both are addressable, but not in the last quarter before a sale.

Do you handle the tax and legal side?

Structure is discussed jointly, but you should have your own tax advisor and lawyer. Tax outcomes in German succession transactions depend on individual circumstances and cannot be generalised.