Our Managing Partner Widukind Baier has published an in-depth article on business succession in mid-sized companies (Mittelstand). In it, he examines the key challenges that complicate succession processes in practice and shows why many difficulties do not arise during implementation, but already during preparation that begins too late or is insufficiently structured. The article draws on current market developments as well as many years of experience in filling executive positions.
Business Succession Becomes a Strategic Challenge
Business succession is no longer a topic that mid-sized companies can postpone indefinitely. According to KfW, as early as 2025 around 57 percent of owners of mid-sized companies were 55 or older. At the same time, many businesses find it difficult to identify a suitable succession solution, whether because there is no interest within the family or because external options are becoming more complex.
In his article, Widukind Baier makes clear that many succession processes fail not because of individual decisions, but because of a lack of structure and starting too late. What later appears to be an acute problem is often the result of inadequate preparation and an unclear vision of the goal.
The Most Common Stumbling Blocks and Obstacles in Business Succession Include:
- When time becomes the limiting factor: Succession processes are often postponed for too long amid day-to-day operations, causing valuable room for maneuver to be lost and forcing decisions to be made under pressure.
- When companies are not ready to be handed over: Economic success does not automatically mean that a company is structurally prepared for succession. Knowledge, relationships, and responsibilities are often too closely tied to individuals.
- When obvious solutions go unquestioned: Whether within the family or the existing management team – supposedly suitable candidates are often not sufficiently assessed against the actual requirements of the role.
- When the requirements profile remains unclear: Succession decisions are oriented too strongly toward the personality of the previous owner rather than the future challenges facing the company.
- When succession is managed alone: Without an external perspective, important factors such as cultural fit, leadership impact, and long-term viability are often given insufficient consideration.
Beyond that, Widukind Baier shows which measures companies can take to make the succession process more stable. These include, in particular, starting planning early, clearly defining future leadership requirements, and taking a structured and objective approach when selecting suitable candidates.
The article makes clear that successful business succession does not depend on the right person alone. What matters more is a clearly structured process – from developing a vision of the goal through selection to a deliberately designed handover phase.
You can find the full article here: Die 5 häufigsten Stolpersteine und Blockaden der Unternehmensnachfolge im Mittelstand | onpulson
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