Succession Planning: Key to Future-Proofing Your Business
Many businesses grapple with succession planning, jeopardizing their future and the owner's life work. A machine engineering firm faced financial hardships due to inadequate planning. Approximately 106,000 owners of small and medium-sized enterprises in Germany intend to pass on their business annually between 2025 and 2028, yet many delay or avoid professional guidance.
Succession planning is frequently impeded by uncertainty, emotional strain, and fear of making erroneous decisions. Entrepreneurs should analyze their situation with professional assistance and emotional detachment to retain control of the transformation process. Around 30-40% of small and medium-sized transactions occur without professional help, often due to cost, confidentiality, or trust in personal networks. Nevertheless, an objective assessment of the current situation is the starting point for succession planning. Three paths should be considered: maintaining the status quo, transformation with succession planning, or company sale.
Delayed succession planning jeopardizes the future of the entire business. Entrepreneurs should seek professional guidance early to ensure a seamless transition. Around 106,000 owners of small and medium-sized enterprises in Germany plan to hand over their business annually between 2025 and 2028, and many could benefit from professional assistance.
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