More freedom, more peace, more reflection, more life! This is something that quite a few entrepreneurs—especially those from small and medium-sized businesses—have come to appreciate anew during the pandemic. As hard as the pandemic and its economic consequences have hit many, for quite a few entrepreneurs, it was also the first time they were able to step off the operational treadmill.
Especially in smaller SMEs, the workload of the managing partner is often enormous; day-to-day operations constantly demand time and attention. Decisions must be made constantly, and in most cases, the managing partner is solely responsible for them. It’s rare to have co-managing partners or other roles, such as a CFO, who help make and take responsibility for decisions. This demands a high level of commitment—not only in terms of time but also energy.
The abrupt shutdown during the first lockdown gave many entrepreneurs their first chance to take a step back. They had time to reflect on their commitment to the company and their role in its management. Many have come to the conclusion that they want to make a significant change—selling the business as an early succession strategy is currently being considered by many business owners. Whether the business is to be sold in its entirety or whether a partial stake is being sought: it is precisely those companies that are in good shape despite the current crises that are currently being offered for sale. “I want to start over; I want to do something completely different” are statements we’re hearing quite often these days from small and medium-sized business owners.
Not out of necessity, but out of a desire for new opportunities.
A new wave of business sales is currently entering the market. Succession planning is being considered at a time that seems unusually early. The advantage for buyers: the company is operating at full capacity, has retained its full value, and there is rarely an investment backlog—a common issue in succession processes that are often initiated far too late.
Selling a business at the peak of its entrepreneurial prime offers entirely new prospects—for both sides.
The most common question we at Werhausen & Company are asked is: “How exactly do I find the right successor?” There is a great deal of uncertainty about how the process might actually unfold. That’s why we’re especially pleased to support those entrepreneurs who are considering this step and, in doing so, help fulfill the dream of “new freedom” that many entrepreneurs share.
