German Mittelstand faces widening succession gap

A large share of Germany’s healthy small and medium‑sized enterprises (SMEs) lack a clear plan for handing over ownership and management. Experts say almost half of family‑run firms are approaching a generational change, yet only 16 % have a documented succession plan. Without a successor, many companies risk closure, which would affect jobs, client relationships and regional economic value.

The problem is compounded by late preparation, insufficient governance structures and limited access to suitable buyers. Studies show 43 % of family businesses anticipate a transfer of ownership or shares within the next three years, and about half of firms with more than 250 employees expect a generational switch. Successful transitions require early development of a leadership pipeline, transparent family governance (family charter, family council, owner council) and professional board oversight. Initiatives such as the Nachfolgezentrale Berlin aim to provide neutral matchmaking and advisory services to bridge the gap between willing sellers and interested buyers, while calling for stronger policy support, financing tools and reduced bureaucratic hurdles.