Regulating corporate succession is not a chore, but one of the key strategic decisions for small and medium-sized enterprises (SMEs). It makes it possible to ensure the continued existence of the company and at the same time to make changes relevant to the future.
Anyone who deals with succession at an early stage gains valuable time to strategically plan the transition. In addition to legal and financial aspects, the necessary structural adjustments to the company must be considered in particular. At the same time, opportunities and risks should be considered. A well-thought-out succession strategy increases the stability and competitiveness of the company — regardless of which succession solution is chosen.
There are various ways of organising a company succession:
Handing it over to a family member is often the preferred solution. It enables values and traditions to be maintained as well as a high level of continuity for employees and customers. But successful intra-family succession requires more than just blood ties: The next generation must bring interest, competence and entrepreneurial qualities. Early involvement and professional training are therefore essential to avoid conflicts and economic risks.
Successful examples include companies such as Trigema, Ritter Sport and Miele, which arranged their succession early on and familiarized the next generation with the company over the years. On the other hand, Schlecker's intra-family transition was less successful. Inadequate preparation and incorrect strategic decisions ultimately led to insolvency.
If succession is not possible in the family, taking over by long-standing managers or employees may be an alternative. The advantage: These people already know the company, its structures and processes. There are often challenges in financing and building up entrepreneurial know-how. Targeted development of eligible managers can be decisive here.
One successful example is the mechanical engineering company Trumpf, which set out on this path back in the 1950s and later supplemented it with external expertise (see 3.).
If there is a lack of suitable successors in both the family and the company, an external manager can be considered as a buyer. This option provides fresh impetus, but also involves risks — especially when corporate culture and management style do not harmonize. A careful selection of the successor is therefore essential.
Selling to an investor or another company can open up new growth opportunities if the buyer fits the company's strategic direction. A successful example is Viessmann, which sold its heat pump division to CarrierGlobal to enable global growth while remaining a shareholder. But not every sale is successful: Air Berlin and Märklin show that investors with short-term profit targets can cause long-term damage.
1. Early planning: A lead time of several years enables a structured handover and minimizes risks.
2. Open communication: Inform employees, customers and stakeholders about your succession plans in good time.
3. Objective choice of successor: Regardless of personal wishes, it should be checked whether the successor candidates have entrepreneurial thinking and the necessary skills.
4. Clear contractual and financial regulations: Tax aspects, financing models and contract issues should be clarified at an early stage.
5. Ensure professional qualification: The successors must not only be professionally qualified, but must also be able to act entrepreneurially.
6. Consider the buyers' long-term perspective: When selling, the investor's strategic planning should be in line with the company's goals.
Whether within the family, through employees or external investors — a well-thought-out succession plan ensures the long-term success of your company. It is crucial to identify the best solution for companies, employees and customers at an early stage.
Take advantage of professional advice to strategically plan the transition and minimize risks. I would be happy to support you — let us shape the future of your company together!
