German SMEs Face Succession Crisis: Act Now or Risk Future
Succession planning, a critical task for German small and medium-sized enterprises (SMEs), is often impeded by uncertainty, emotional burden, and fear of incorrect decisions. With approximately 106,000 owners contemplating retirement each year from 2025 to 2028, experts advocate early and systematic planning to safeguard the future of these businesses.
Experts suggest viewing succession as a professional process, involving distinct stages, roles, and objectives that cater to all stakeholders' interests. This process should commence early, with emotional preparation, realistic transfer steps, and overcoming control desires and fear of change. Professional support throughout is indispensable.
Many businesses lack structure, clarity, and courage in their transition planning. If no future-proof succession is in sight, entrepreneurs should consider an early exit strategy. This involves selecting the right buyer, discreet preparation, and the right timing. Analyzing the situation with professional guidance and emotional detachment helps maintain control of the transformation process.
Succession is not a one-time event but a strategic process encompassing multiple dimensions. A future check can create transparency, helping entrepreneurs decide between maintaining the status quo, transforming with succession planning, or selling the company.
With the retirement of many SME owners on the horizon, delaying succession planning jeopardizes the future of these companies and the owner's life's work. Early and systematic planning, considering all aspects and seeking professional support, is vital for a successful succession.
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