The attractive alternative to setting up a new company

After many years of a successful professional career, managers often reach the point of reorientation. The desire for independence and self-determination coupled with the search for an exciting new professional challenge is no longer compatible with the role of an employee – even as a salaried managing director. The path to self-employment is an attractive option. However, the classic start-up is often out of the question for this target group, as it involves a very long build-up phase before the first sales can be achieved.

Against this backdrop, founding a company as part of a company succession in the SME sector is an interesting option. A so-called management buy-in (MBI) is an attractive way to become an entrepreneur. Customers, employees and supplier relationships are already in place and a well-established team can therefore be used. Compared to a start-up, the risk is more manageable. As the results of previous years are available, the expected return on capital for the first few years can be calculated. A well-founded company valuation can also be carried out very easily.

But even with this model, there are numerous potential pitfalls to consider in addition to the success factors.

Founding through company succession – opportunities, challenges and practical tips