BPI Study: High Potential in French Business Succession Market

A comprehensive study by BPI France reveals that the business succession market in France has enormous untapped potential, with 370.000 small and medium-sized enterprises expected to change hands by 2030—three times the current transaction rate.

A Major Economic Challenge

On November 27, 2025, BPI France Le Lab, in partnership with CCI France, CMA France, and C.R.A., published a new study on business succession in France. Based on over 5.000 responses from business leaders and more than 50 interviews with executives and experts, the study highlights business succession as a critical stage in the lifecycle of companies and a major challenge for the French economy, particularly in the context of an aging leadership demographic.

The Numbers Tell a Compelling Story

40% of SMEs and mid-sized companies with at least one employee plan to transfer their business within the next five years. This represents approximately:

• 310.000 very small businesses (1-9 employees)
• 58.000 small and medium enterprises (10-249 employees)
• 1.200 mid-sized companies (ETI)
• Nearly 3 million jobs potentially affected

However, at the current transaction rate, only 130.000 businesses would actually be transferred in the next five years—revealing a significant gap between intention and reality.

Key Barriers for Sellers

The study identifies several critical obstacles preventing business owners from successfully transferring their companies:

Psychological Barriers

Many business owners face emotional challenges when contemplating succession. Some experts even describe the need for "grief counseling" to help certain sellers let go of their life's work. Additionally, 28% of business leaders haven't even begun thinking about their succession, and 80% indicate they would prefer to stay longer at the helm if they cannot transfer by their target date.

Lack of Preparation

When succession is planned for more than a year out, 70% of leaders are only in the early stages—collecting information or still in the reflection phase. Remarkably, half of the leaders surveyed haven't defined a specific post-succession project, suggesting they aren't yet envisioning their "life after."

Finding the Right Successor

While 40% of potential sellers report no significant obstacles, finding the right buyer remains a real challenge. The main concerns include:

• Absence of buyers (19%)
• Receiving offers at prices deemed too low (18%)
• Administrative complexity (14%)

Sellers are particularly concerned about ensuring business continuity and preserving jobs—the top priority criterion for succession. They also value alignment with the buyer's values and vision, with trust between seller and buyer being essential for successful succession.

Challenges for Buyers

The study reveals that 60% of buyers encounter significant obstacles during the acquisition process:

Financing Difficulties

Access to financing is the primary obstacle for buyers (cited by 30%), particularly for employee buyouts (44%). About one-third of buyers were forced to postpone or reduce necessary investments due to financial charges from acquisition loans, and 26% of buyers consider the purchase price to have been too high in retrospect.

Post-Acquisition Challenges

Half of all buyers report difficulties in the months following the acquisition, primarily related to human resource management (25%). External buyers face greater information asymmetry than internal buyers, sometimes leading to "unpleasant surprises."

Market Transparency Issues

Both sellers and buyers struggle with market opacity. While 23% of potential sellers cite the absence of purchase offers as a major obstacle, 22% of external buyers have difficulty finding a business to acquire. According to experts, the succession market still relies heavily on word-of-mouth, though online platforms are emerging to facilitate connections between sellers and buyers while maintaining confidentiality.

A New Profile of Seller Emerges

Interestingly, while 64% of succession intentions are triggered by anticipated retirement, the majority of observed successions are initiated by leaders under 60. The study identifies a new seller profile: younger (often under 50), seeking to transfer their business either due to excessive workload or psychological burden, or from a desire for change while remaining in entrepreneurship. These sellers typically have a defined post-succession project.

The Success Rate

Despite the challenges, the study shows that 70% of buyers report achieving their initial objectives (22% completely, 48% overall). This success rate is particularly high among former employees (79%). Buyers who benefited from the seller's presence or availability post-acquisition were more likely to meet their activity and development forecasts.

Our Take-Home Point

The most important elements from the business owners viewpoint, when considering its successor, are:

• Business & Jobs continuity: 48%
• Human/Relationship skills of the successor: 40%
• Experience/Knowledge of the successor: 38%

Most business owners only start looking for a successor 12 months before their retirement. This leads often to not having enough time to assess all these elements.

Our advice: succession take time, and the best succession happen over a 4 years period - 2 years for finding a successor, and 2 years for the transition. Building up a relationship with potential successors ahead of time will improve the process but also the outcome.

Legacies Management mission is to become the best home for software business owners looking for a successor in Europe. Don't hesitate to contact us to start a relationship now !

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