Entrepreneurs who will be stepping down by the end of 2022 are, on average, already 66 years old. The retiring baby boomer generation will therefore leave a significant gap in leadership positions at Germany’s small and medium-sized enterprises, creating what must be described as a structural succession gap. The need for succession will rise rapidly in the medium term, as more than one million business owners are already over 60 years old.
The Comeback of the Family?
In times of crisis, intra-family business succession becomes the preferred succession model among SMEs. While before the crisis, approximately 45% of business owners with retirement plans had considered handing over the business to a family member, this share rose to 61% in 2020. This means that family succession is, at least for now, once again the most popular option.
External Succession: The Best Alternative
But who will buy the company, and where can a suitable successor be found to ensure the family business’s future if no one is available within the family? Successfully securing one’s life’s work should under no circumstances be left to chance. A deliberate strategy and professional preparation are essential for success. DUB.de is one of the leading resources in Germany for family business owners. There, business owners looking to hand over their companies can search for a successor confidentially and anonymously or receive guidance from experts and professionals.
Support and Visibility from Experts
One of the leading M&A specialists for succession planning is the KERN Group, with over 30 locations throughout the DACH region. Through their database, consultants have access to approximately 300,000 verified investor profiles and can quickly and effectively identify suitable buyers and successors. The first step is often a thorough valuation of the business. The results of this valuation enable the right decisions to be made.
KERN’s Experience and Expertise
KERN was founded nearly 20 years ago based on the personal experience of a Bremen-based business family navigating a generational transition and focuses exclusively on business succession for SMEs. And should an intra-family generational transition be the primary focus, KERN’s specialists—who are also trained mediators and coaches—are equipped to guide a family through the transition process. A comprehensive M&A service covering all aspects of business succession for small and medium-sized enterprises.
