{"id":25684,"date":"2026-03-03T22:23:26","date_gmt":"2026-03-03T20:23:26","guid":{"rendered":"https:\/\/pointofnew.at\/glossary\/business-succession\/"},"modified":"2026-03-06T15:43:43","modified_gmt":"2026-03-06T13:43:43","slug":"business-succession","status":"publish","type":"page","link":"https:\/\/pointofnew.at\/en\/glossary\/business-succession\/","title":{"rendered":"Business Succession"},"content":{"rendered":"<p><!-- TL;DR Box --><\/p>\n<div style=\"background:#f0f1f3;padding:1.2em 1.5em;margin-bottom:2em;border-radius:8px;\">\n<strong>Key takeaways:<\/strong> Business succession is the process of transferring a company to the next generation\u2014within the family, to employees, or to external buyers. In Austria, thousands of SMEs are facing the succession question. Successful succession combines strategic planning, business model development, and human factors.\n<\/div>\n<nav style=\"background:#f9f9f9;padding:1.5rem 2rem;border-radius:8px;margin-bottom:2rem;\">\n<strong style=\"font-size:1.1rem;\">Table of Contents<\/strong><\/p>\n<ol style=\"margin:0.75rem 0 0;padding-left:1.25rem;\">\n<li><a href=\"#definition\" style=\"text-decoration:none;color:#1a5276;\">What is business succession?<\/a><\/li>\n<li><a href=\"#formen\" style=\"text-decoration:none;color:#1a5276;\">Forms of succession<\/a><\/li>\n<li><a href=\"#prozess\" style=\"text-decoration:none;color:#1a5276;\">The succession process<\/a><\/li>\n<li><a href=\"#innovation\" style=\"text-decoration:none;color:#1a5276;\">Succession as an opportunity for innovation<\/a><\/li>\n<li><a href=\"#bewertung\" style=\"text-decoration:none;color:#1a5276;\">Business valuation and financing<\/a><\/li>\n<li><a href=\"#oesterreich\" style=\"text-decoration:none;color:#1a5276;\">Succession in Austria: Figures and support<\/a><\/li>\n<li><a href=\"#fehler\" style=\"text-decoration:none;color:#1a5276;\">Typical mistakes in succession<\/a><\/li>\n<li><a href=\"#faq\" style=\"text-decoration:none;color:#1a5276;\">Frequently asked questions about business succession<\/a><\/li>\n<\/ol>\n<\/nav>\n<h2 id=\"definition\">What is business succession?<\/h2>\n<p>The <strong>business succession<\/strong> involves the transfer of management and\/or ownership of a company to a successor. It is one of the most critical moments in a company&#8217;s lifecycle\u2014and at the same time, a strategic opportunity for renewal. <\/p>\n<p>A wave of successions is expected in Austria in the coming years: According to the WKO, thousands of <a href=\"https:\/\/pointofnew.at\/en\/glossary\/mittelstand-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">medium-sized enterprises<\/a> are affected. Around one-third of all handovers fail or lead to closure\u2014often because planning starts too late or no suitable successor is found. <\/p>\n<h2 id=\"formen\">Forms of succession<\/h2>\n<ul>\n<li><strong>Intra-family succession:<\/strong> Handover to children or relatives\u2014classic, but not always possible or sensible<\/li>\n<li><strong>Management Buy-out (MBO):<\/strong> Takeover by existing executives\u2014advantage: continuity and company knowledge<\/li>\n<li><strong>Management Buy-in (MBI):<\/strong> Takeover by external managers\u2014brings a fresh perspective and new competencies<\/li>\n<li><strong>External succession \/ Sale:<\/strong> Sale to third parties, strategic investors, or private equity firms<\/li>\n<li><strong>Employee participation:<\/strong> Handover to the workforce\u2014e.g., as a cooperative or through participation models<\/li>\n<li><strong>Fusion \/ Merger:<\/strong> Merger with a complementary company<\/li>\n<\/ul>\n<h2 id=\"prozess\">The succession process<\/h2>\n<p>Successful succession requires 3\u20135 years of lead time:<\/p>\n<ol>\n<li><strong>Strategic preparation (3\u20135 years in advance):<\/strong> Analyze the business model, make the company &#8220;succession-ready&#8221;, reduce dependencies on the owner<\/li>\n<li><strong>Search for a successor:<\/strong> Internal or external? Define the requirement profile, identify and vet candidates <\/li>\n<li><strong>Business valuation:<\/strong> Objective valuation as a basis for negotiation\u2014earnings value, asset value, multiplier methods<\/li>\n<li><strong>Induction and handover:<\/strong> Gradual transfer of responsibility, knowledge transfer, and handing over customer and partner relationships<\/li>\n<li><strong>Legal and tax structuring:<\/strong> Articles of association, tax optimization, financing structure<\/li>\n<li><strong>Post-merger phase:<\/strong> <a href=\"https:\/\/pointofnew.at\/en\/glossary\/change-management\/\" style=\"color:#1a5276;text-decoration:none;\">Change management<\/a> for the team, communicate the new strategy, and create stability<\/li>\n<\/ol>\n<h2 id=\"innovation\">Succession as an opportunity for innovation<\/h2>\n<p>Business succession offers a unique opportunity for strategic renewal:<\/p>\n<ul>\n<li><strong><a href=\"\/glossar\/geschaeftsmodell-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">Business model innovation<\/a>:<\/strong> The successor can challenge and further develop the existing model\u2014with a fresh perspective and new ideas<\/li>\n<li><strong>Digitalization:<\/strong> The successor generation often brings digital competence\u2014an opportunity for an increased <a href=\"https:\/\/pointofnew.at\/en\/glossary\/digital-maturity\/\" style=\"color:#1a5276;text-decoration:none;\">digital maturity level<\/a><\/li>\n<li><strong><a href=\"https:\/\/pointofnew.at\/en\/glossary\/brand-positioning\/\" style=\"color:#1a5276;text-decoration:none;\">Repositioning<\/a>:<\/strong> New leadership can position the brand in a contemporary way and tap into new <a href=\"https:\/\/pointofnew.at\/en\/glossary\/target-audience-analysis\/\" style=\"color:#1a5276;text-decoration:none;\">target groups<\/a><\/li>\n<li><strong>New business areas:<\/strong> <a href=\"https:\/\/pointofnew.at\/en\/glossary\/venture-building\/\" style=\"color:#1a5276;text-decoration:none;\">Venture building<\/a> and <a href=\"https:\/\/pointofnew.at\/en\/glossary\/open-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">open innovation<\/a> as growth strategies<\/li>\n<li><strong><a href=\"https:\/\/pointofnew.at\/en\/glossary\/sustainable-business-model\/\" style=\"color:#1a5276;text-decoration:none;\">Sustainability<\/a>:<\/strong> Successors often integrate sustainability strategies that make the company more future-proof<\/li>\n<\/ul>\n<p>The combination of existing substance (customers, know-how, brand) and new innovative power is the greatest asset of succession.<\/p>\n<h2 id=\"bewertung\">Business valuation and financing<\/h2>\n<p>Central aspects of financial succession planning:<\/p>\n<ul>\n<li><strong>Valuation methods:<\/strong> Capitalized earnings method, discounted cash flow (DCF), multiplier method\u2014often several methods are combined<\/li>\n<li><strong>Value drivers:<\/strong> Customer relationships, <a href=\"https:\/\/pointofnew.at\/en\/glossary\/brand-building\/\" style=\"color:#1a5276;text-decoration:none;\">brand strength<\/a>, recurring revenue, employee know-how, <a href=\"https:\/\/pointofnew.at\/en\/glossary\/usp-unique-selling-proposition\/\" style=\"color:#1a5276;text-decoration:none;\">USP<\/a><\/li>\n<li><strong>Financing sources:<\/strong> Equity, bank financing, seller loans, venture capital, subsidies<\/li>\n<li><strong>Earn-out models:<\/strong> Part of the purchase price is paid based on performance\u2014reduces risk for both sides<\/li>\n<\/ul>\n<p>A solid <a href=\"https:\/\/pointofnew.at\/en\/glossary\/business-model-canvas\/\" style=\"color:#1a5276;text-decoration:none;\">business model<\/a> with a clear <a href=\"https:\/\/pointofnew.at\/en\/glossary\/value-chain\/\" style=\"color:#1a5276;text-decoration:none;\">value chain<\/a> and a good <a href=\"https:\/\/pointofnew.at\/en\/glossary\/pricing-strategy\/\" style=\"color:#1a5276;text-decoration:none;\">pricing strategy<\/a> significantly increases the company value.<\/p>\n<h2 id=\"oesterreich\">Succession in Austria: Figures and support<\/h2>\n<ul>\n<li><strong>WKO Succession Exchange:<\/strong> The largest platform for business transfers in Austria\u2014anonymous advertisements for transferors and successors<\/li>\n<li><strong>Subsidies:<\/strong> AWS succession funding, young entrepreneur funding, founding privilege for new company formations within the framework of succession<\/li>\n<li><strong>Consulting services:<\/strong> WKO Start-up Service, tax advisors specializing in succession, specialized M&amp;A advisors<\/li>\n<li><strong>Tax aspects:<\/strong> Real estate transfer tax, capital duty, and income tax optimization during the handover<\/li>\n<\/ul>\n<h2 id=\"fehler\">Typical mistakes in succession<\/h2>\n<ul>\n<li><strong>Starting too late:<\/strong> Succession needs 3\u20135 years of lead time\u2014many only start when it becomes urgent<\/li>\n<li><strong>Emotional barrier:<\/strong> Letting go is difficult for founders and owners \u2013 professional support helps<\/li>\n<li><strong>No clear business model:<\/strong> If the company depends too heavily on the owner, it is hardly transferable<\/li>\n<li><strong>Unrealistic price expectations:<\/strong> Emotional value and market value often diverge<\/li>\n<li><strong>Family over competence:<\/strong> Intra-family succession only if the person is also professionally and personally suitable<\/li>\n<li><strong>Forgetting the team:<\/strong> Employees need transparency and involvement\u2014uncertainty leads to fluctuation<\/li>\n<\/ul>\n<p><!-- CTA Box --><\/p>\n<div style=\"background:linear-gradient(135deg,#1e3a5f,#2563eb);color:#fff;padding:2rem;border-radius:12px;margin:2rem 0;text-align:center;\">\n<h3 style=\"color:#fff;margin-top:0;\">Are you planning a business succession and want to position the business model for the future?<\/h3>\n<p style=\"font-size:1.1rem;\">We support transferors and successors in strategic development\u2014for a succession that creates value.<\/p>\n<p><a href=\"https:\/\/pointofnew.at\/en\/business-model-innovation-services\/\" style=\"display:inline-block;background:#fff;color:#1e3a5f;padding:0.75rem 2rem;border-radius:8px;text-decoration:none;font-weight:600;margin-top:0.5rem;\">\u2192 Schedule a consultation now<\/a>\n<\/div>\n<p><!-- FAQ --><\/p>\n<div class=\"faq-section\" itemscope=\"\" itemtype=\"https:\/\/schema.org\/FAQPage\">\n<div>\n<h2 id=\"faq\">Frequently Asked Questions (FAQ)<\/h2>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">When should I start succession planning?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>At least 3\u20135 years before the planned handover. The earlier you start, the more options you have: finding and training a successor, strengthening the business model, utilizing tax optimizations, and increasing the company value. <\/p>\n<\/div>\n<\/div>\n<\/details>\n<\/div>\n<div>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">How much does a business succession cost?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>Costs include: business valuation (\u20ac3,000\u2013\u20ac15,000), legal and tax advice (\u20ac5,000\u2013\u20ac30,000), optional M&amp;A advisor (success fee 3\u20135% of the purchase price). In addition, there may be investments in the company&#8217;s transferability. Subsidies can cover part of the consulting costs.  <\/p>\n<\/div>\n<\/div>\n<\/details>\n<\/div>\n<div>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">What makes a company &#8220;succession-ready&#8221;?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>Succession readiness means: the company functions independently of the current owner. This requires: documented processes, an independently acting management team, diversified customer relationships, a clear business model, and strong brand positioning. <\/p>\n<\/div>\n<\/div>\n<\/details>\n<\/div>\n<div>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">How do I find the right successor?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>First, define a requirement profile: professional competence, leadership experience, entrepreneurial thinking, and cultural fit. Search simultaneously internally (executives, employees) and externally (succession exchanges, M&amp;A advisors, industry networks). Plan for an induction phase of at least 12\u201324 months.  <\/p>\n<\/div>\n<\/div>\n<\/details>\n<details style=\"background:#eaecee;border-radius:8px;padding:0;margin-bottom:0.75rem;\">\n<summary style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;list-style:none;\">What options exist besides family succession?<\/summary>\n<div style=\"padding:0 1.2rem 1rem 1.2rem;\">Beyond passing the business to family, you can pursue management buyout (MBO), sale to employees (ESOP), external buyer acquisition, or merger with a complementary business. Some owners choose a hybrid model, retaining partial ownership while bringing in professional management. In Austria, the FFG and AWS offer succession-specific funding programs to support transitions.<\/div>\n<\/details>\n<\/div>\n<\/div>\n<p><!-- Verwandte Begriffe --><\/p>\n<div style=\"margin-top:2.5em;padding-top:1.5em;border-top:1px solid #e2e8f0;\">\n<strong>Related terms:<\/strong><\/p>\n<div style=\"display:flex;flex-wrap:wrap;gap:0.5rem;margin-top:0.5rem;\">\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/mittelstand-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">Mittelstand Innovation<\/a><br \/>\n<a href=\"\/glossar\/geschaeftsmodell-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">Business Model Innovation<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/change-management\/\" style=\"color:#1a5276;text-decoration:none;\">Change management<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/brand-positioning\/\" style=\"color:#1a5276;text-decoration:none;\">Brand Positioning<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/brand-building\/\" style=\"color:#1a5276;text-decoration:none;\">Brand Building<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/digital-maturity\/\" style=\"color:#1a5276;text-decoration:none;\">Digital maturity<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/innovation-culture\/\" style=\"color:#1a5276;text-decoration:none;\">Innovation Culture<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/value-chain\/\" style=\"color:#1a5276;text-decoration:none;\">Value chain<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/venture-building\/\" style=\"color:#1a5276;text-decoration:none;\">Venture Building<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/sustainable-business-model\/\" style=\"color:#1a5276;text-decoration:none;\">Sustainable Business Model<\/a>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Key takeaways: Business succession is the process of transferring a company to the next generation\u2014within the family, to employees, or to external buyers. In Austria, thousands of SMEs are facing&hellip;<\/p>\n","protected":false},"author":1,"featured_media":24529,"parent":25140,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-25684","page","type-page","status-publish","has-post-thumbnail","hentry"],"featured_image_src":"https:\/\/pointofnew.at\/wp-content\/uploads\/2025\/07\/Point-of-New-Business-Model-Innovation-Benedikt-Hasibeder-scaled.png","_links":{"self":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/comments?post=25684"}],"version-history":[{"count":12,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25684\/revisions"}],"predecessor-version":[{"id":28319,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25684\/revisions\/28319"}],"up":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25140"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/media\/24529"}],"wp:attachment":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/media?parent=25684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}