Business Succession Done Right
The complete guide: from contract review to final handover – how to secure location, team and goodwill when passing on your restaurant or hotel.
Starting Point
Review contract, legal form & positions
Documents
Numbers, contracts & due diligence prep
Successor Search
Profile, discreet marketing & selection
Negotiation
Lease, inventory, handover fee & authorities
Handover
Protocol, go-live & communication
Clarify positions & review the lease
An orderly succession starts with a clear picture: who wants to hand over what to whom – and what does the contract allow?
The Lessor
Looking for a solvent, qualified operator with a viable concept who will pay rent reliably and treat the property with care.
Current Tenant (Exiting)
Wants to step out, receive compensation for inventory and goodwill, and cleanly terminate all liability risks.
The Successor
Needs planning security (term, rent, permits), transparent financials and solid financing.
Lease Review
Almost all commercial leases require consent for any transfer. Key items to check:
- Consent reservation & requirements
- Remaining term, extension options, indexation
- Permitted use & operating hours
- Maintenance and refurbishment obligations
- Security deposit, bank guarantees, collateral
Legal structure: Sole proprietorship or corporation?
With a sole proprietorship a new lease is typically signed; inventory and goodwill are sold separately (Asset Deal). With a corporation (GmbH, UG) a Share Deal is possible – contracts stay in place, but all liabilities transfer along with them. Thorough legal and tax advice is essential.
Numbers, contracts & due diligence
The better the document package, the faster the financing – and the higher the achievable price.
Financial Data
The foundation for every serious candidate assessment:
- P&L / annual accounts (3 years)
- Revenue breakdown (food, drinks, rooms)
- Seasonality & occupancy data
- Staff cost ratio & rent ratio
- Fixed costs & supplier prices
Ongoing Contracts
Some are valuable, others risky. Items to review:
- Brewery / beverage supplier (supply ties)
- Kitchen equipment, leasing & maintenance
- IT, POS systems (TSE!), PMS
- Insurance & utilities
- GEMA / music licensing & permits
Staff & Section 613a BGB
In a business transfer under German law, the new operator automatically enters into existing employment relationships. Employment contracts, vacation accruals and length of service must be properly documented – and staff must be informed in writing and in good time.
Permits & Technical Records
Restaurant licence, building documents, fire safety certificates, grease trap logs, hygiene records – all must be complete and transferable.
Profile, discreet marketing & selection
The best succession is the invisible one: discreetly marketed, thoroughly vetted and systematically selected.
Successor Profile
Define must-have criteria early: concept fit, hospitality experience, references, creditworthiness and start date. This avoids a flood of unfit applicants and wasted time.
Discreet Marketing
During ongoing operations, discretion is essential – for staff, regulars and suppliers. We work with anonymised exposés, NDAs and targeted outreach via our candidate database.
Candidate Check
Structured pre-selection: self-disclosure, business plan, credit check and a personal concept interview. The top 3–5 candidates are introduced to the lessor.
Contract, inventory, handover fee & authorities
From Letter of Intent to the lessor’s consent – we coordinate the legally and commercially sensitive steps.
Letter of Intent & Contract
Key terms, exclusivity and timeline are first set out in the LoI. After successful due diligence, the actual lease or transfer agreement follows – legally reviewed and aligned across all parties.
Inventory & Handover Fee
Inventory list with proof of ownership (free of third-party rights), condition report with photos and functional checks, fair handover fee based on age, residual value and the income value of the business.
💰 Fair handover fee valuation
Valuing the handover fee (Ablöse) is one of the most common points of dispute. Our partner portal Hogawelt offers an Ablöserechner (handover fee calculator) that provides a professional valuation of inventory and goodwill based on the German ImmoWertV standard – available on our German-language partner portal for a fee.
Authorities & Consents
Transfer the restaurant licence to the successor, obtain the lessor’s consent, coordinate the handover of ongoing contracts (brewery, insurance, GEMA, utilities). We manage the process so nothing falls through the cracks.
Protocol, go-live & communication
The handover is more than just a key exchange – it lays the foundation for a smooth restart.
Handover Protocol
Key list, meter readings (electricity, gas, water), access credentials (POS, PMS, booking portals, Wi-Fi), inventory acceptance – all captured in one protocol with photo documentation and signatures from all parties.
Communication Plan
Who gets informed when: team, regulars, suppliers, public. A coordinated plan prevents rumours, preserves the reputation of the business and safeguards revenue during the critical transition.
Avoiding common pitfalls
Frequent issues: handovers without a proper inventory protocol, forgotten ongoing contracts, unclear handover fee valuations, missing lessor consent or third-party ownership rights over equipment. We work through each item systematically – so there are no unpleasant surprises later.