German Mittelstand faces growing succession gap

A wave of German mid‑size firms is confronting a looming succession crisis. According to KfW Research, about 109,000 companies will need a successor each year through 2029, and in 2024 chambers provided nearly 10,000 advisory sessions, yet 5,620 firms reported no interested successor and 27 % of those consulted were already considering closure.

The challenge is not only finding a successor but also preparing them to lead. The WHU‑Otto Beisheim School of Management and investment manager evolutiq have launched the ETA Academy to promote "Entrepreneurship Through Acquisition" – buying existing businesses as an alternative path to entrepreneurship. The academy aims to embed this model alongside founding and family succession, stressing that prospective owners must acquire decision‑making authority and strategic skills, not just inherit a title.

Stakeholders such as chambers, banks and business networks are urged to intensify training and matchmaking to turn potential heirs into effective entrepreneurs, thereby safeguarding the German economic landscape.