The Needle in a Haystack
The business succession market is characterized by the fact that more and more companies are entering the handover phase and are looking for a successor. This is contrasted by low birth rates and a very stable labor market. As a result, the gap between buyers and sellers is growing ever wider.
This imbalance generally creates an interesting situation for interested MBIs (Management Buy-Ins) looking to find the right company for them. Why, then, do those searching feel that there are fewer interesting companies than expected? Even though the ratio has been shifting in recent years, it’s still a matter of finding the “needle in a haystack.” To do so, you need to know what the needle looks like and actively search for it.
Crossroads: Entrepreneur or Not?
Many executives are considering breaking away from their status as employees and becoming entrepreneurs in the future. However, simply longing to bring their own ideas to life and recoup their investment isn’t enough.
This decision requires—in addition to the many other qualities that define an entrepreneur—above all a willingness to take on greater risk and a high level of responsibility for others. The potential consequences are far-reaching and should be carefully considered. Ultimately, every MBI must decide for themselves to what extent they possess these necessary entrepreneurial qualities.
Assessing Individual Strengths
The next important step is to become aware of your own strengths and weaknesses and to articulate your added value as precisely as possible. What successes have I achieved in the past? And which of my skills did I use in doing so? This reflection provides an overview of your specific knowledge and skills. A personal SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) can be a useful tool for this.
Industry Focus
Based on the decisions you’ve made so far, narrowing your focus to a specific industry should be straightforward. If not, start with one industry for now and study it in detail. During this phase, it’s important to familiarize yourself with the specifics of the industry, particularly its “language.” While this may sound trivial at first glance, it represents a significant competitive advantage during subsequent discussions with the seller. Ultimately, the business owner selects the buyer whom he considers—for entirely personal reasons—to be the right candidate to carry on his life’s work and lead his company and its employees into a secure future.
Active Search
The first four steps lay all the essential groundwork for actively pursuing the search for the right company. Many MBIs rely on luck, their existing social networks, or chance at this stage. This can work, but it is not the norm. Anyone who wants to find their target company within a reasonable timeframe of 12–18 months must treat the search process as a top priority. Success depends largely on selecting the right business exchange, having a large network, and possessing detailed knowledge of the process. Working with an experienced advisor ensures high efficiency and a high success rate.
Fact-Checking & Cultural Understanding
Once the target company has been identified as a result of this intensive preparation and active search, the next step is to review the key financial metrics. In addition to these hard factors, corporate culture plays a crucial role! If the buyer and seller have fundamentally different value systems—such as approaches to employee management or handling future challenges—this usually becomes apparent quite quickly during acquisition negotiations.
No one should be under the illusion that a cultural shift can be achieved overnight. Therefore, right from the very first joint discussions, the focus should be on aligning the very personal values of the buyer and seller. In this regard, the expertise of a consultant experienced in facilitation is of crucial importance.
Conclusion
A clear commitment to entrepreneurship, an objective assessment of individual strengths, a focus on one or a few industries, an active search process, and guidance from a consultant with proven experience are the keys to success in finding the right company.
