Succession in Polish Family SMEs: A Practical Playbook

Across Poland, there's a quiet wave of family-owned businesses where the founder is 55-65, the next generation isn't interested, and the owner is starting to think about what comes next.

These aren't distressed turnarounds. They're profitable, stable businesses with loyal clients and decades of expertise. The question isn't whether they can continue. It's how to transition them to someone who will respect what was built and take it forward.

Why succession matters now

Poland's SME landscape was shaped by the generation that built businesses in the 1990s and early 2000s. Many of those founders are now approaching retirement age. Their children often work in different industries, live in different cities, or simply aren't interested in running the family business.

That creates an opportunity—for operators who understand that buying a business isn't about "disrupting" it. It's about continuing it, with discipline and respect.

What makes a good succession candidate

From a buyer's perspective, the best succession targets share a few traits:

Strong fundamentals:

• Steady revenue and cash flow (not necessarily growing fast, but predictable)
• Loyal client base with long relationships
• Clear market position (they're known for something specific)
• Basic profitability (EBITDA margin of 10-20% is typical)

Operational readiness:

• Documented processes (even if simple)
• A team that can operate day-to-day without the founder
• Clean financials that a bank can verify
• No major liabilities or legal entanglements

Owner readiness:

• The founder is genuinely ready to step back (not just testing the waters)
• They care about legacy and want the business to continue
• They're willing to stay involved during transition (3-6 months is typical)
• They're realistic about valuation

If these boxes are checked, you're looking at a business that can transfer smoothly.

The typical succession path in Poland

Here's what a clean succession looks like:

Step 1: Initial conversation (weeks 1-4)

• Owner and buyer meet, usually through a mutual contact (advisor, banker, industry connection)
• High-level discussion: Why now? What's the vision? What's the ask?
• If there's alignment, move to diligence

Step 2: Light diligence (weeks 5-8)

• Financial review (3 years of statements, EBITDA normalization, working capital analysis)
• Client concentration and retention check
• Team structure and key person risks
• Basic legal and tax review

This isn't a full audit. It's a focused check to confirm the fundamentals.

Step 3: Structure the deal (weeks 9-12)

• Agree on valuation (typically 3-6× EBITDA in the Polish lower middle market)
• Financing structure: bank debt, equity, vendor loan
• Transition plan: How long will the owner stay? In what capacity?
• Legal structure: share purchase vs. asset purchase

Polish banks are supportive of succession deals if the numbers work. They want to see:

• DSCR above 1.3× (ideally 1.5×)
• Proof the business works without the founder
• Clear contracts with key clients

Step 4: Transition (months 1-6 post-close)

• Owner stays on as advisor, introduces the buyer to clients, hands off relationships
• Buyer learns the rhythm, builds trust with the team, makes small improvements
• By month 6, the owner steps back fully

Most owners are relieved. They've carried the business for decades. Knowing it's in good hands—and that their team, clients, and legacy are respected—matters more than squeezing an extra percentage point on price.

What sellers can do now (if transition is 12-18 months away)

If you're an owner thinking about succession, the best time to prepare is now. Here's a simple 90-day checklist:

Financial clarity:

• Clean up your financials (reconcile any gaps, normalize EBITDA)
• Understand your working capital needs (this will come up in every bank conversation)
• Know your number (what do you need to walk away comfortably?)

Operational independence:

• Delegate one client vertical or service line to a trusted team member
• Document your weekly decision-making process
• Take a two-week vacation and see what breaks (then fix it)

Relationship mapping:

• List your top 10 clients and key relationships
• Identify which ones are tied to you personally vs. the business
• Start building team depth on the accounts that matter

None of this is about giving up control. It's about proving—to yourself and to a future buyer—that the business you built is strong enough to continue.

Why operators care about succession stories

For operators, succession deals are attractive because:

• The business works. You're not buying a fixer-upper. You're buying something proven.
• The seller is aligned. They want continuity, not extraction. That makes negotiation smoother.
• Financing is straightforward. Banks understand succession. They've seen it before.
• There's room to improve. Even well-run businesses have upside: better processes, basic digital tools, pricing optimization, second-line leadership.

The playbook is clear. Buy a good business. Run it with discipline. Let the improvements compound. Exit in 3-5 years or reinvest.

The bottom line

Succession in Polish family SMEs is happening now. It's not a distressed wave. It's a generational handoff. Founders are ready. Buyers are ready. The infrastructure (banks, advisors, legal frameworks) is in place.

If you're a seller, the best gift you can give yourself is clarity: clean financials, operational independence, and a realistic view of what the business is worth. That's what speeds deals.

If you're a buyer, the opportunity is clear: find a good business, respect what was built, and execute with discipline. That's the model.

Looking to understand succession pathways in Poland? I write practical notes on sourcing, financing, and closing SME deals in Europe—focused on what works.

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