When Is the Right Time for Succession or Sale?

The best time for succession or sale is rarely the one at which you have to.

Most owners hand over when an event forces them to: health, a conflict among shareholders, exhaustion. Then the date is fixed before the company is ready for it. And a buyer smells pressure.

The right time is not a date. It is a window in which three things are right at once.

Three clocks that rarely run in sync

A handover succeeds when the company, the market and the owner are ready in the same window. These three clocks tick independently of one another — and that is precisely what makes timing difficult.

The company clock: the business runs stably, grows, and functions without the owner in day-to-day operations. A business that hangs entirely on one person is a risk to a buyer, not an acquisition target.

The market clock: there are active buyers, the financing environment is sound, and your sector is not currently under pressure. Multiples fluctuate with interest rates and the economy — the same business is worth a different amount in two years.

The owner clock: you really want to let go. Not just the stress, but the responsibility, the identity, the daily sense of being needed. Whoever is not inwardly ready sabotages their own process.

When all three clocks align, you have a window. It does not stay open forever.

Why pressure is the costliest factor in the process

A handover under time pressure costs money — and precisely where it hurts most: in the price and in the terms.

Whoever must sell negotiates from the weaker position. The preparation is incomplete, the figures are not prepared, and there is no time to search for the right buyer. Instead of several serious parties, there is one — and it sets the pace.

Time is not a comfort but a value lever. Whoever plans early hands over from a position of strength. Whoever plans late takes what comes.

Demographics argue against postponement

The window is not only a personal question. In Austria, a whole wave of handovers is pending.

In the period 2025 to 2034, around 52,500 companies are due for handover — just under 23 percent of all employer companies, with about 705,000 employees affected. In the next five years alone, around 25,000 businesses plan a handover.

This has an uncomfortable side. The more companies seek a successor or buyer at the same time, the stronger the competition for the few good buyers. Just under half of the businesses willing to hand over have, according to the 2025 SME study of the Austrian Chamber of Civil-Law Notaries, not yet found a suitable successor.

Whoever enters the market early and prepared does not stand in this queue. Whoever waits competes with it.

How to recognise that it is too early

Planning early does not mean handing over early. There are good reasons to postpone a sale — and honesty here protects your value.

Postpone if the company has just had a special effect that distorts the figures — upwards as well as downwards. A one-off major order feigns an earning power that is not sustainable. Buyers examine this in due diligence and correct accordingly.

Postpone if a recognisable value driver is shortly before maturity: a new product, a second pillar, the building of a second tier of management. Sometimes 18 months of preparation are worth more than the quick deal today.

And postpone if dependence on the owner is still too great. That is the most common value killer in owner-led companies — and at the same time the one where, with a little lead time, the most can be changed.

What "prepared" concretely means

Preparation is not a weekend project. Realistically 12 to 36 months, depending on how tidy the company is today.

In this time arises what secures value: clean, transparent figures over several years. A management tier that carries the business when you are not in the house. Contracts with customers and suppliers that do not hang on your person. And a realistic idea of what the company is worth — before a buyer names the first number.

This is precisely where the process begins: not with the listing, but with a sober assessment of the company's value and a clear picture of your own goals.

The best succession begins years before closing. Speak early and in confidence with IGCP Capital Partners — independent, discreet, on equal footing. → igcp.at

Frequently Asked Questions

How long does a company sale take? From serious preparation to closing you should realistically allow 12 to 24 months, longer in complex cases. The sale process itself — from buyer approach to signature — often takes 6 to 12 months. The preparation beforehand decides the price.

Should I sell when the economy is weak? Not necessarily. In weaker phases valuation levels fall, while strategic buyers with good liquidity remain active. What is decisive is less the overall economy than the situation in your sector and the quality of your company. A well-run business finds the right buyer even in difficult markets.

Is it too late if I only start planning at 65? It is never too late, but later becomes more expensive. Whoever sells under time pressure without preparation regularly gives away part of the value. Even with short lead time a process can be run in a structured way — it just begins from a weaker position.

How do I recognise that my company is ready for sale? By three things: it runs profitably and transparently, it functions without you in day-to-day operations, and you yourself are ready to let go. If one of these is missing, that is not a stop sign — but an indication of what you should still work on before the process.