Germany's SMEs Face Succession Crisis: 106,000 Owners Plan to Retire by 2028
Succession planning is a critical topic for businesses, especially with around 106,000 owners of small and medium-sized enterprises in Germany planning to retire each year between 2025 and 2028. However, many businesses lack clarity and courage in this strategic process.
An objective assessment of the company's economic situation is the first step. If no future-proof succession is in sight, entrepreneurs must consider an exit strategy early on. Succession is not a singular event but a multi-dimensional process involving various stakeholders.
Three paths should be realistically weighed: maintaining the status quo, transforming the business with succession planning, or selling the business. Choosing the right buyer, discreet preparation, and the right timing are crucial for a successful sale. Uncertainty, emotional overload, and fear of making wrong decisions often hinder early succession planning.
Delaying succession planning risks the future of the entire business, not just the owner's life work. It's essential to view succession as an entrepreneurial process that considers the interests of all stakeholders. Professional advice can help navigate this complex journey, ensuring a smooth transition for the business and its employees.
