Germany faces wave of family business generational transitions

The Institute for SME Research (IfM) in Bonn estimates that between 2026 and 2030 roughly 186,000 German family-owned companies will undergo ownership changes, impacting about 480,000 employees. Demographic trends mean that half of mid‑size entrepreneurs will reach retirement age between 2025 and 2035, turning succession into a pressing nationwide issue.

A 2024 DIHK survey shows a growing gap: nearly 10,000 owners sought neutral advisory support for succession—a 16 % rise from the previous year—while only around 4,000 potential successors were identified. About 50 % of firms still hand the business to a family member, 17 % select an internal employee, and 29 % sell to external buyers. Emotional and strategic challenges are common; 34 % of senior owners report difficulty letting go, and 40 % feel negotiations start with excessively high price expectations. The transition phase, often overlooked, can cause delays, staff uncertainty, and supplier caution. Research indicates that succession processes planned at least five years in advance have a significantly higher success rate, yet many handovers are initiated too late, leaving insufficient time for a smooth interim period. Interim managers are highlighted as a bridge to stabilize operations during this critical phase.