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In an increasingly globalized world, the search for a successor is becoming a cross-border challenge for companies. Transferring a business to new ownership is always a challenging phase that requires careful planning and thorough consideration. The question of whether—and why—one should also look for successors abroad is becoming increasingly relevant.
1. Skilled Labor Shortage in Germany
Germany is facing a shortage of skilled workers. Many industries, particularly among small and medium-sized enterprises (SMEs), are struggling to find qualified executives. According to a study by KfW, by the end of 2027, approximately 626,000 of the roughly 3.8 million SMEs will be seeking a successor. According to the study, approximately 125,000 business succession cases are expected each year through 2027, provided that all owners actively pursue and implement these plans. In many cases, there is a lack of suitable successors, which further exacerbates the situation. These bottlenecks can be alleviated by expanding the search for successors to international markets. Foreign candidates can bring specialized knowledge and experience that may be difficult to find on the German labor market.
2. Difficulty Finding Successors Domestically
Statistics show that many companies in Germany are having difficulty finding successors domestically. According to a study by the German Chamber of Industry and Commerce (DIHK), fewer than half as many potential successors as in 2019 are inquiring with their local Chamber of Industry and Commerce (IHK) about suitable businesses—a historic low. There are many reasons for this: demographic change, the exodus of skilled workers to metropolitan areas, and a lack of willingness to take over businesses in rural regions are just a few of the factors. These challenges make it all the more urgent to also consider international candidates.
3. Diversification and New Perspectives
An international successor can bring fresh perspectives and innovative approaches. In a globalized economy, it is crucial for companies to be flexible and adaptable. Diverse cultural backgrounds and experiences can help make the company more versatile and resilient in the face of market changes. Diversity in leadership also fosters innovation and can lead to better decision-making processes.
4. Tapping into New Markets
A foreign successor can offer valuable insights and contacts in other markets. German companies looking to expand internationally can benefit from the networks and knowledge that an international CEO brings to the table. This facilitates market entry and can significantly increase growth potential.
5. Cultural Enrichment and Workplace Culture
Cultural diversity in the workplace contributes to a positive and dynamic work environment. An international successor can help establish a global mindset within the company and raise employees’ awareness of international contexts. This is a particularly important competitive advantage in the age of globalization.
6. Technological and Innovative Impulses
Germany is known for its innovative strength, but there is always room for new ideas. Foreign successors can bring different knowledge and experiences developed in other parts of the world. These new approaches can help strengthen the company’s competitiveness and keep it at the cutting edge of technology.
7. Strategic Advantages Through International Expertise
A successor from abroad can offer strategic advantages by leading the company with a broader, global perspective. Knowledge of international markets and business practices can help strategically position the company more effectively and make it more competitive on a global scale.
8. Challenges and Solutions
Of course, the search for an international successor also presents challenges. Language barriers, cultural differences, and legal frameworks are just a few of the hurdles that must be overcome. German companies should therefore consult experts and advisors early on to address these challenges. A comprehensive onboarding program and intercultural training can help ease the transition and prevent misunderstandings.
Conclusion
For German companies, the international search for a successor offers many advantages. Access to a larger talent pool, the opportunity to tap into new markets, and the enrichment provided by diverse cultural perspectives are just a few of the reasons why German companies should take a global approach to their succession search. Despite the associated challenges, the opportunities that an international perspective brings outweigh the challenges. With careful planning and expert support, the global search for successors can be a key to the long-term success and competitiveness of German companies.
The Turkish-German Chamber of Industry and Commerce (TD-IHK) is a major organization that promotes economic exchange and cooperation between Turkey and Germany. Serving as a bridge between the two countries, the TD-IHK offers a wide range of services for businesses, including market analyses, access to legal and tax advice, and support in establishing business relationships. The Chamber also organizes numerous events and networking meetings to strengthen dialogue and cooperation between Turkish and German companies. The TD-IHK’s goal is to intensify bilateral economic relations and promote sustainable growth.
