From founder-led business to acquisition target: Selling in Slovenia’s M&A market

In June 2026, the European Commission warned that a growing number of small business owners across the EU are approaching retirement without a successor, putting jobs and local economies at risk.

For a small market like Slovenia’s, getting those transitions right carries particular weight. 

I spoke to Mateja Ahej, co-founder of Targo Finance, an M&A advisory firm that helps Slovenian businesses through ownership changes and company sales. Mateja shared what makes a business attractive to buyers, the unique challenges of family succession, and how Slovenia’s M&A market has changed since she started out 20 years ago. 

Q. Can you tell me about your career and what led you to found Targo Finance? 

My academic background is in economics, and my thesis focused on succession planning among SMEs in Slovenia. That gave me an early, research-based view of the market before I gained any commercial experience.

After graduating, I worked at an investment company that operated much like a family office, managing wealth for entrepreneurial families. In that role, I noticed a growing need among business owners looking to exit, but very few options available to them. 

Slovenia had two or three specialist advisors at the time, and beyond that, owners could really only turn to a bank or one of the Big Four accounting firms. 

That gap was what pushed me to build something of my own. I attempted a business brokerage model similar to what exists in the United States, listing small businesses for sale on a website. However, it didn’t work. The model depends on volume, and Slovenia’s market is simply too small to support it. 

I learned from that experience and continued building my expertise. A few years later, I met my current business partners and founded Targo Finance in 2018. 

Q. What challenges do business owners typically face when preparing for an ownership transition? 

The first one is timing. Owners rarely come to us when business is booming. If the company is doing well and succession is a possibility, it tends not to cross their mind. 

It’s usually a downturn, or anxiety about a recession elsewhere, that pushes owners to think about selling. That’s not an ideal moment to initiate the process.

The gap between what an owner believes their business is worth and its real valuation is another common issue. As is the degree to which a business still depends on its founder. If the owner is still paying every bill and checking accounts personally, that’s a red flag for any buyer.

There’s also a structural issue specific to Slovenia. Owners have historically avoided paying out profits from the company, using that cash instead to buy property or make investments through the business. When it’s time to sell, those assets have to be spun off, which is a process that can take half a year and significantly prolongs the transaction. 

Q. What makes a business attractive to potential buyers or successors? 

What I see most consistently is that stability sells. Buyers want resilience across market cycles, rather than a company doing €15 million one year and €5 million the next, with no clear explanation for the swing. 

Alongside that, buyers look for established second tier management, so the business is not overly dependent on the founder, and a workforce that is sufficiently staffed. Labor is scarce right now, so having the right people in place is a significant advantage.

Q. What valuation mistakes do owners commonly make?

In the past, valuation conversations were far more emotional, particularly with smaller businesses. Once a company reaches around €1 million of EBITDA, a level of professionalism tends to already be in place, and the emotional element becomes less of a factor. 

Where owners consistently go wrong is misunderstanding what a valuation should include. We mostly use discounted cash flow analysis, and owners will often ask whether we need to add the value of stock, or real estate, on top. 

That figure already accounts for everything, and explaining this is one of the more difficult conversations we have with them. 

Owners also tend to arrive with a number in mind, wanting €10 million, or a multiple of 5-7x EBITDA, without being able to justify it. It’s not enough to state a figure. It has to be backed up, and most owners do not have the expertise to do that themselves, which is why they turn to advisors.

Q. What makes family business succession different from a sale to an external party? 

It brings expectations about how the next generation will run the business, and often unspoken conditions. An owner might hand over a company worth €15 million while still expecting something back, whether that is financial or simply staying involved in some capacity. 

Roughly 20% of the transactions we advise on are family successions, and the dynamics blend family relationships with business decisions in a way that a professional sale doesn’t. You’re sitting across the table from people you might otherwise see on a Sunday.

With a financial buyer, the process is typically more clearly defined. After the transaction, the former owner usually remains involved for a transitional period of around six to twelve months to ensure a smooth handover. Once the transition is complete, they generally step away from the business, as financial investors prefer management to operate independently, rather than having the previous owner remain closely involved over the long term.

Q. What steps should owners take now if they’re planning a future transition? 

Reducing owner dependency is one of the most important steps. That might mean delegating client relationships or day-to-day operations to others in the business, so the company can function without the founder in the room. 

Owners should also expect their asking price to hold up under scrutiny, not simply reflect a number that feels fair. 

This means understanding what a buyer will actually pay for stability and resilience, and addressing any structural issues around how profits and personal assets have been handled inside the company.

Q. How has Slovenia’s M&A market changed in recent years? 

Private ownership in independent Slovenia only dates back to 1991, when the country was still under a socialist system. That means we have roughly 35 years of entrepreneurship behind us, and owners from that first generation are approaching the point where they will exit, if they haven’t already.

Attitudes have shifted substantially too. If you sold your business 20 years ago, people assumed something was wrong. Now, owners increasingly see a sale as an opportunity to exit on their own terms.

Finally, the buyer base has changed. A number of private equity firms have established a presence in Slovenia in recent years, and foreign investment funds that once viewed the region with caution now recognize it as a longstanding, well-regulated part of the EU. 

Buyers today are split roughly 30-70 between domestic and international, a shift from a market once dominated by Slovenian buyers or those who already knew the region.