Business succession in the skilled trades

The skilled trades (Handwerk) are regarded as the backbone of the German economy. Yet many businesses now face their greatest challenge: business succession. A demographic wave of owners will retire over the coming years – which makes finding the right successor extremely urgent. Traditional approaches, such as searching through the local network, are not efficient enough and severely limit the pool of potential successors. Together, these factors make for an emotional and high-risk process.

It is therefore high time to digitalise the search for a successor. This is exactly where ProxDeal comes in. In this article, we show you how a qualified M&A longlist helps you ensure a successful business handover.

The pitfalls of business succession in the skilled trades

According to estimates by the German Confederation of Skilled Crafts (Zentralverband des Deutschen Handwerks, ZDH), tens of thousands of trade businesses will face the question of business succession in the coming years. This demographic shift presents the sector with an immense challenge. Finding a suitable candidate who brings not only business management knowledge but also hands-on trade expertise, and who will carry the company culture forward, is particularly difficult. Many owners have built their life’s work single-handedly over decades – and now have to manage a complete M&A process without any specific expertise.

Traditional ways of finding a successor include personal networks, notices at the local chamber of skilled crafts (Handwerkskammer) or adverts in trade journals. However, these channels are too fragmented and do not cover the full range of potential candidates. There is also a lack of objective data to identify the best options. In the worst case, this leads to the closure of competitive businesses.

Digitalising the search for successors in the skilled trades

The challenges of the traditional approach are clear. The solution lies in moving away from ‘gut feeling’ towards a data-driven foundation. Instead of relying on a handful of random contacts from your personal network, a data-driven solution enables a systematic analysis of the entire market.

At the heart of this process is the creation of a precisely tailored longlist. In both quality and quantity, it goes far beyond what manual research can achieve. This also systematically eliminates the risk of missed opportunities.

What data goes into the digital longlist?

Company and industry information:

• Industry and specialisation (e.g. plumbing, joinery, bakery)
• Legal form and headcount
• Location and catchment area

Financial metrics:

• Revenue and profit
• Growth trends
• Liquidity

Digital presence:

• Websites and online shops
• Social media activity

ProxDeal delivers more than just aggregated data. It is not a static database but a dynamic analysis that enables an informed selection. Each potential candidate comes with a detailed company description and an individual match rationale.

ProxDeal: the data-driven solution for your succession search

Building an M&A longlist with hundreds of potential candidates is hardly feasible without the right tool. ProxDeal provides the data foundation you need to perfect the search for the ideal successor in the skilled trades.

A solid data foundation

Hundreds of millions of relevant data points – such as digital presence or growth trends – are analysed to uncover hidden potential. This goes far beyond traditional approaches.

Intelligent analysis

Specific filters such as industry and revenue narrow the results down to the companies that are genuinely relevant. For each candidate, ProxDeal also provides an individual match rationale.

Example: You are looking for a successor for your joinery business. ProxDeal identifies not only other joinery businesses but also a strategically suitable investor from the interior fit-out sector or an expansion-minded company from an adjacent industry – one you would never have found through traditional channels.

Efficient longlist creation

The research process is fully automated. A high-quality longlist is ready in just a few minutes.

Discreet identification

Thanks to ProxDeal’s data-protection-compliant approach, you can identify potential buyers anonymously without making your plans public. This gives you a clear competitive advantage.

Conclusion: the digital future of finding successors in the skilled trades

Business succession in the skilled trades faces challenges that cannot be overcome with traditional methods. The future lies in a data-driven approach: with objective facts and a 360-degree analysis – which takes into account not only conventional criteria but also synergies and balance sheet data – you significantly reduce the risk of failure.

ProxDeal enables exactly this efficient, fact-based process. This makes succession planning not only faster but also more successful and more future-proof – thanks to a combination of unrivalled data depth and AI analysis.

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