Only around 30% of companies that are slated to be passed on in the next few years already have concrete succession plans in place. This alarming figure is one of the key findings of a recent study by Mainz University of Applied Sciences, represented by Prof. Dr. Anna Rosinus in collaboration with the Ministry of Economic Affairs, Transport, Agriculture and Viticulture and the Rhineland-Palatinate Chambers of Industry, Commerce and Skilled Crafts.
Further key findings include:
- Small companies (fewer than 5 employees) are significantly less prepared: Only 20% already have concrete succession plans in place
- Entrepreneurs who tend to focus on strategic aspects of business management are more prepared (60%) for the handover of their businesses.
- The biggest challenge is finding suitable successors, with a handover within the family still being the preferred option by far.
- Consultation helps! Not only does it improve the level of information, it also means that concrete succession plans are more likely (60%) to be developed.
A successful handover not only provides financial benefits for those leaving, but also helps to preserve their life’s work and maintain jobs in the region.
Involving external consultants at an early stage and looking for potential successors within the family and among the company’s own employees are key factors for a successful succession solution.
You can find the study here: https://hs-mz.de/unternehmensnachfolge
