Across Austria and southern Germany, a generation of owners who founded or expanded their companies in the 1980s and 1990s is approaching retirement. Many have children with careers of their own, and the question of who takes over can stay open for years.
Austrian and German owners face a different set of choices from their British counterparts. Family firms in the DACH region often hold property, pension commitments, shareholder loans and long-standing banking relationships inside the operating company. Separating them before a sale takes time. Good tax advice at this stage pays for itself.
When these owners first meet us, their questions rarely start with price. They ask if the company name will survive and if long-serving staff will keep their jobs. Many also ask about the location of headquarters, which often anchors employment in a small town. Price comes later, once those answers feel right.
Owners usually weigh four routes, each with different consequences for the family and the workforce.
Family succession.
Passing ownership to children keeps the company in the family, provided a successor wants the role and has the experience to lead it.
Management buyout.
Selling to existing managers rewards loyalty, though they usually need an equity partner to fund the purchase.
Trade sale.
Strategic buyers often pay full prices where they see cost savings, and integration into a larger group usually follows within months.
Equity partnership.
An investor takes a stake and backs the existing team to grow the company further.
Private equity offers owners some options that a trade sale usually excludes. An owner can sell a majority stake now and keep a minority holding for several years, sharing in the growth that follows. The company keeps its name and location while gaining a board with acquisition experience. Family members can stay on the advisory board if they wish.
Succession deals take longer than most owners expect. Preparing a second management layer, updating shareholder agreements, documenting customer relationships and agreeing a position among family members can take two years before any transaction starts.
Price expectations deserve an early conversation. Owners often value their life's work by what it took to create, while buyers look at future cash flows. An adviser who knows the mid-market can set realistic expectations before any process starts. A gap that surfaces early can often be handled through structure.
Most family companies we meet run on the owner's personal knowledge. Capturing that knowledge in systems and processes protects the business once the owner steps back.
In the partnerships we favour, the founding family often keeps a minority stake and a seat on the advisory board. That visible commitment helps staff and long-standing customers accept the change.
Fortpark Group’s Vienna office is happy to talk owners through this preparation phase, and we will do so often long before any sale process begins. Owners who start early keep more choice over timing and buyer.