The Succession Challenge 2025: Status Quo and Problem Areas
Business succession today is far more than a simple handover – it’s a decisive strategic moment that determines the future viability of family businesses. Current data paints a clear picture of the challenge facing German mid-sized companies.
Current Statistics on the Succession Situation in the Mid-Market
The dimensions of the succession issue are impressive: According to current surveys by the Institute for SME Research (IfM) Bonn, approximately 38,000 family businesses in Germany will face a handover by 2025 – corresponding to an estimated transaction volume of 52 billion euros and affecting over 440,000 jobs.
What’s alarming: While 57% of entrepreneurs aimed for family-internal succession in 2018, this proportion has decreased to under 42% by 2025. Demographic change and altered career preferences of the next generation are leading to a succession gap that continues to grow.
A current study by the KfW Banking Group (2025) concludes that almost 36% of all businesses due for transfer have difficulty finding suitable successors. The German Chamber of Industry and Commerce (DIHK) adds: For about 25% of planned successions, the process fails already in the preparation phase.
The Three Biggest Stumbling Blocks of Previous Succession Concepts
Why do so many succession processes fail? Data from practice reveals three central problems:
- Focus on preserving status quo instead of growth: An analysis by the BDI (Federation of German Industries) shows that 68% of succession processes are primarily oriented toward preserving the status quo. However, companies that are handed over with this static attitude lose an average of 21% market share within five years after the transfer.
- Lack of digitalization strategy: The Deloitte Global Family Business Survey 2025 proves that only 34% of family businesses develop a comprehensive digitalization strategy as part of succession. At the same time, digitally transformed companies grow on average 1.8 times faster than their traditionally operating competitors.
- Too late initiation of the process: According to Chamber of Commerce data, the optimal preparation time for a succession is 5-7 years. The reality: 62% of entrepreneurs only begin concrete preparations 2-3 years before the planned exit – much too late for a strategic reorientation process.
The Economic Impact of Failed Successions
The economic costs of failed successions are enormous. The ifo Institute for Economic Research estimates the annual economic damage from unsuccessful transfers at approximately 3.7 billion euros. Particularly concerning: According to surveys by the ZEW (Centre for European Economic Research), failed successions lead to complete shutdown of the company in over 18% of cases – with all consequences for employees, customers, and suppliers.
Also dramatic is the so-called “inherited stagnation”: Companies handed over without a strategic growth plan lose an average of 15% in revenue and 23% in employees in the first three years after succession. The Bain study “The Growth-Oriented Succession” (2024) shows that traditional handover processes can represent a significant growth impediment.
These figures underscore: A succession that is merely oriented toward preservation rather than development represents a substantial economic risk – not only for the individual company but for the entire economic location.
“Modern business succession isn’t about preserving the past, but about shaping the future. Those who merely inherit risk dying. Those who grow, survive.” – Prof. Dr. Thomas Zellweger, University of St. Gallen, Center for Family Business
This makes it clear: The conventional approach to business succession urgently needs rethinking. A paradigm shift is needed – away from mere “inheriting” toward strategic growth management.
Paradigm Shift: Why Growth Mindset is Revolutionizing Succession
The figures from the first section lead to a clear realization: The traditional succession approach – characterized by preservation thinking and continuity striving – no longer works in the dynamic market environment of 2025. A fundamental rethinking is needed.
From Preservation Culture to Innovation Dynamics
The data speaks a clear language: According to a PwC analysis (2024), family businesses that combine their succession with a comprehensive growth strategy achieve an EBITDA margin in the first five years after handover that is 43% higher than comparable companies primarily focused on continuity.
The fundamental difference lies in the basic attitude: While traditional succession concepts are often guided by the question “How do we preserve what we’ve achieved?”, modern approaches ask “How do we develop the company to the next level?”
This reorientation means specifically:
- Instead of preserving proven processes → Critical evaluation of all business practices
- Instead of focus on existing customer base → Systematic market development and customer segment expansion
- Instead of continuing established product lines → Innovation-based product development and service models
- Instead of continuing analog sales and marketing processes → Implementation of digital lead generation and customer journey management
Booz Allen Hamilton noted in a 2024 study: Companies that invest at least 15% of their investment budget in digital transformation and new business models as part of succession grow with 68% higher probability above the industry average than companies that primarily invest in continuing the existing.
The New Role of the Successor: Chief Growth Officer Instead of Heir
The paradigm shift fundamentally changes the role of the successor. A modern successor is no longer primarily a guardian of tradition, but assumes the function of a Chief Growth Officer – with all associated tasks:
- Potential analysis: Systematic identification of growth fields and development opportunities
- Change management: Transformation of corporate culture and employee mindset
- Digitalization strategy: Development and implementation of digital business models
- Revenue Growth Management: Establishment of scalable marketing and sales processes
- Innovation control: Systematic development of new products and services
An EY survey among 250 successful successors shows: 72% of particularly successful business takeovers were characterized by the successor spending less than 50% of their working time on operational tasks and instead focusing on strategic growth initiatives.
This repositioning often requires a mindset shift from all involved: The senior entrepreneur must accept that change does not mean criticism of the existing, but necessary development. Employees must understand that innovation orientation does not imply disregard for their previous performance, but future-proofing.
Value Enhancement Instead of Value Preservation: A New Success Model
The data is clear: The growth-oriented approach in business succession leads to significantly better economic results. The Boston Consulting Group analyzed more than 300 succession processes in family businesses in 2024 and identified three success models:
| Succession Model | Revenue Growth after 5 Years | Average EBIT Increase | Company Valuation |
|---|---|---|---|
| Traditional Handover (Preservation Model) | +3.2% | +1.8% | Factor 5.2 of EBIT |
| Moderate Growth Orientation | +16.5% | +11.3% | Factor 7.6 of EBIT |
| Transformative Growth Strategy | +42.7% | +23.4% | Factor 10.4 of EBIT |
Particularly noteworthy: Companies with transformative growth strategy not only achieved significantly better economic indicators, but also showed significantly higher resilience to market changes and disruptive developments.
However, implementing a growth-oriented succession strategy requires a structured approach. McKinsey found that 67% of companies that started the succession process without a clear growth roadmap missed their growth targets – even if they were fundamentally growth-oriented.
These insights lead directly to the next section, where we present a systematic blueprint for growth-oriented successions – the Revenue Growth Blueprint for business transfers.
The Revenue Growth Blueprint for Successful Business Successions
Successful growth-oriented successions follow a clear, structured process. Based on a meta-study by the University of St. Gallen (2024) and practical experience from over 500 succession processes, a five-stage Revenue Growth Blueprint has proven particularly effective.
Phase 1: Potential Analysis and Defining Growth Objectives
The first step of any growth-oriented succession is a ruthless inventory – not just of the current state, but especially of untapped potential.
The structured potential analysis includes:
- Customer Satisfaction Analysis: How satisfied are existing customers? Where are unused cross and upselling potentials?
- Market Whitespace Mapping: Which market segments are still unexplored? How large is the potential?
- Competitive Gap Analysis: Where do competitors stand better, where lies one’s own strength?
- Digital Maturity Assessment: How digitally mature is the company compared to competition?
- Revenue Leakage Audit: Where and why are potential revenues being lost?
Decisive here: The analysis must be data-based and as objective as possible. A study by Oracle (2024) proves that companies performing their potential analysis based on Customer Data Platforms and Business Intelligence tools identify precise growth potentials with 3.4 times higher probability than companies primarily relying on internal assessments.
From the potential analysis, concrete, measurable growth goals are subsequently derived – differentiated by time horizons:
- Quick Wins (3-6 months)
- Mid-Term Growth (1-2 years)
- Strategic Growth (3-5 years)
Phase 2: Sharpening Customer and Market Orientation
The next phase focuses on realigning the company along the identified potentials – with the customer at the center of all considerations.
Core elements of this phase are:
- Customer Persona Redefinition: Detailed redefinition of ideal target customers and their needs
- Customer Journey Mapping: Analysis and optimization of all customer touchpoints
- Value Proposition Design: Clarification of the value promise for each customer segment
- Pricing Strategy Review: Value-based pricing models instead of cost-oriented approaches
The figures speak for this approach: According to a KPMG analysis, companies implementing a comprehensive Customer-Centricity strategy as part of succession achieve an average 26% higher Customer Lifetime Value within two years compared to companies without corresponding realignment.
A practical example: The machinery service provider Technoplus GmbH redefined its target customer groups as part of the 2023 succession, developed segment-specific service packages, and established systematic NPS management. The result: The customer churn rate dropped from 12% to under 4%, while the average annual revenue per customer increased by 31%.
Phase 3: Digital Transformation as Growth Driver
Digitalization is perhaps the most powerful lever for growth in the succession process. This isn’t about technology for its own sake, but about systematically digitizing customer relationships and business processes.
The structured approach includes:
- Digital Customer Experience: Development of digital customer portals, self-service options and personalized digital touchpoints
- Marketing Automation: Implementation of lead nurturing systems and customer journey automation
- Data-Driven Decision Making: Building business intelligence systems and predictive analytics
- Digital Product Enhancement: Enriching physical products with digital services
Accenture examined more than 150 mid-sized companies in the succession process in 2024 and found: Those that invested at least 12% of their revenue in digital transformation achieved on average 2.7 times higher growth than companies that invested less than 5%.
“Digitalization is not a technological issue, but a strategic one. It enables family businesses in the succession phase to achieve disproportionate growth with limited resources.” – Dr. Marcus Kölling, Director of the Friedrichshafen Institute for Family Businesses
Phase 4: Modernizing Marketing and Sales Processes
The fourth phase of the Revenue Growth Blueprint focuses on reorienting customer acquisition and retention systems. Traditional family businesses often rely on existing customer relationships and referrals – a growth-limiting approach.
The modernization includes:
- Content Marketing Strategy: Building systematic content production to position as a thought leader
- Inbound Lead Generation: Establishing automated lead generation systems
- Sales Process Engineering: Implementing a scalable, CRM-supported sales process
- Account-Based Marketing: Developing targeted strategies for key accounts
- Customer Success Management: Proactive support to maximize customer lifetime value
The results are impressive: According to a Forrester analysis (2024), family businesses implementing an integrated Revenue Operations System as part of succession achieve an average 24% higher sales success with 31% lower customer acquisition costs.
Exemplary is Faber Industrietechnik: After being taken over by the founder’s daughter in 2022, a fully digitalized marketing and sales process was implemented – with automated lead generation, a structured nurturing process, and data-based account management. Within 18 months, the new customer rate increased from 8% to 22%, while the average deal size grew by 47%.
Phase 5: Establishing Scalable Structures and Leadership Models
The last phase of the blueprint focuses on scalability – because growth requires adapted organizational structures and management systems.
Central elements are:
- Agile Team Structures: Conversion from hierarchical to agile, cross-functional teams
- Performance Management Systems: Implementation of KPI-based management systems
- Talent Acquisition Strategy: Targeted recruitment of digital natives and change agents
- Leadership Development: Building a second management level that supports the growth course
Deloitte examined the relationship between organizational structure and growth success in 2024: Family businesses establishing matrix structures with clear growth responsibilities as part of succession achieved 19% higher productivity per employee than companies with classically hierarchical structures.
These five phases form the proven Revenue Growth Blueprint for succession processes. Important to note: This is not a linear process, but an integrative approach – the phases interlock and should be implemented in synchronization.
However, the success of this blueprint depends substantially on another factor: the right timing. And that’s exactly what the next section is about.
The Time Dimension: The Optimal 5-Year Roadmap to Succession
The right timing and a realistic timeline are crucial for the success of a growth-oriented succession. Too short-term planning is one of the main reasons for the failure of succession processes – an insight supported by current data.
The Critical Moment for Succession Start
The research is clear: According to an analysis by the Institute for SME Research (2024), the structured succession process should ideally begin 5-7 years before the planned departure of the senior.
The reasons for this are obvious:
- Growth strategies need time until full effectiveness
- Digital transformation processes require multi-year change management processes
- The development of new leadership structures cannot be implemented in a fast-track procedure
- Cultural change needs time to take root
A study by the WHU – Otto Beisheim School of Management underscores the consequences of too late planning: In succession processes initiated less than 3 years before the senior’s departure, the rate of fundamental strategy errors was 64% – compared to only 17% in processes with 5+ years lead time.
The time factor gains additional urgency through increasing market dynamics. According to the Boston Consulting Group, the half-life of business models has decreased from an average of 7 years in 2010 to just under 3 years today – a trend that makes an early start to the transformation process even more urgent.
Milestones and Phase Planning
For a successful growth-oriented succession, a 5-year roadmap with clearly defined milestones has proven effective:
| Time Frame | Strategic Focus Topics | Operational Milestones |
|---|---|---|
| Year 5-4 before handover |
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| Year 4-3 before handover |
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| Year 3-2 before handover |
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| Year 2-1 before handover |
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| Year 1 until handover |
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This phase planning ensures that the growth process can be implemented systematically and without excessive time pressure. Practical testing confirms the approach: A KPMG study shows that 83% of family businesses following this timeline achieved their growth goals as part of succession – compared to only 31% of companies with a more compressed timeline.
Parallel vs. Sequential Handover Models
Another temporal aspect concerns the question of whether the assumption of responsibility should be parallel (in all business areas simultaneously) or sequential (area by area).
The data here is differentiated:
- Sequential models have proven particularly effective in companies with strongly diversified business areas. The successor first takes responsibility for individual areas (typically marketing/sales or product development) and gradually expands their sphere of influence.
- Parallel models are particularly suitable for companies with high interdependence between business areas. Here, the successor assumes an overarching role from the beginning, while the senior gradually relinquishes responsibility.
According to an analysis by Roland Berger (2024), sequential models achieve a 28% higher success rate in diversified companies, while parallel models are 23% more successful in highly integrated organizations.
Crucial for both models is a clear role distribution: PwC found that 71% of failed succession processes had unclear areas of responsibility between senior and junior – an avoidable problem through structured time planning and explicit definition of responsibilities.
This time frame forms the basis for any successful growth process in the context of succession. But even the best timeline is ineffective if the emotional dimension is not adequately addressed – that’s exactly what the next section is about.
Psychology and Communication in the Succession Process
The emotional dimension is the often underestimated success factor in business successions. While most succession concepts focus on financial, legal, and strategic aspects, the data clearly shows: In 73% of failed handover processes, it was primarily psychological and communicative factors that led to failure (Source: Witten Institute for Family Business, 2024).
The Emotional Journey of the Transferor
For the senior entrepreneur, the handover is far more than a business process – it’s a fundamental identity change. A study by the Psychological Institute of the University of Mannheim (2024) has mapped the typical emotional curve of the transferor:
- Rationalization phase: Intellectual acceptance of the necessity of succession, often still without emotional processing
- Ambivalence phase: Oscillation between willingness to transfer and need for control, often associated with unconscious sabotage of changes
- Loss phase: Becoming aware of the impending identity change, frequently associated with defensive behavior
- Reorientation phase: Development of a new role and identity, ideally as mentor and sparring partner
The crucial understanding: This emotional journey is not avoidable, but a necessary process. The Deloitte Family Business Survey 2024 shows that handover processes where this emotional dimension is actively addressed have a 42% higher probability of success.
Practical approaches to constructively shape this process:
- Coaching for the senior entrepreneur through specialized succession consultants
- Development of a concrete “Life After Business” plan for the transferor
- Establishment of a “Senior Advisory Board” that maintains a meaningful role for the transferor
- Clear temporal step plans for withdrawal that provide security through predictability
“The biggest challenge for senior entrepreneurs is not letting go of operational control, but letting go of the entrepreneurial identity. Succession is primarily a psychological process, only secondarily a business management process.” – Prof. Dr. Sabine Rau, Family Business Researcher
Productive Use of Generational Conflicts
Different perspectives between senior and junior are not only inevitable but can – when properly utilized – become a decisive competitive advantage. The McKinsey study “Next Generation Family Business” (2024) identifies typical areas of tension:
| Senior Generation Perspective | Junior Generation Perspective | Productive Potential |
|---|---|---|
| Preservation of proven methods | Innovation and change | Balance of stability and renewal |
| Experience-based decisions | Data-driven analyses | Combination of experience and analytical precision |
| Personal relationships | Scalable systems | Personal touch in scalable processes |
| Organic growth | Disruptive business models | Strengthen core business while developing new initiatives in parallel |
The art lies in understanding these different perspectives not as conflicts, but as complementary viewpoints. According to an analysis by Strategy&, succession processes that establish a structured dialogue between generations achieve a 37% higher innovation rate while maintaining more stable core processes.
Practical approaches to productively use generational differences:
- Reverse Mentoring Programs: Junior generation trains seniors in digitalization topics, while seniors share their experience
- Dual Innovation Labs: Establishment of parallel innovation structures with different focus on evolution vs. disruption
- Joint Strategy Retreats: Moderated workshops to develop a cross-generational vision
- Professional Conflict Moderation: External guidance for fundamental directional decisions
Stakeholder Communication: Involving Employees, Customers, Suppliers
A growth-oriented succession affects not only the entrepreneurial family but the entire ecosystem of the company. According to an analysis by Bain & Company (2024), systematic stakeholder communication is one of the strongest predictors for successful succession processes.
The study data shows: Companies accompanying their succession with a structured communication plan record:
- 29% less employee fluctuation during the transition phase
- 26% higher customer retention rates
- 22% more stable supplier relationships
- 31% fewer rumors and speculations in the market
An effective stakeholder communication plan should be designed phase-specifically:
- Early planning phase (years 5-3 before handover):
- Communication only in the innermost leadership circle
- Development of a communication strategy
- Preparation of senior management for their role as communicators
- Preparation phase (years 3-1 before handover):
- Gradual information of the extended leadership circle
- Involvement in transformation processes
- Identification and preparation of “Change Champions”
- Implementation phase (1 year before to handover):
- Structured information for all employees
- Personal communication with A-customers
- Information for strategic partners and suppliers
- External communication (press, associations, etc.)
- Post-transfer phase (up to 1 year after handover):
- Continuous status updates on the transformation process
- Communicate visible success stories
- Establish feedback loops
Especially important: Authenticity and honesty. The Boston Consulting Group found that transparently communicated “growing pains” in the succession process lead to higher trust than unrealistically positive portrayals.
The psychological dimension of succession forms the foundation for all other aspects. But even with optimal psychological design, every growth-oriented succession needs a solid financial and legal structure – that’s exactly what the next section is about.
Financial and Legal Architectures for Growth-Oriented Successions
The financial and legal framework conditions of a succession significantly determine long-term growth success. Unlike traditional handover models, which primarily focus on substance preservation and tax optimization, growth-oriented successions must center on flexibility and investment capability.
Modern Company Valuation in Growth Context
The valuation of the company is the starting point of any succession planning – and at the same time a critical success factor. Too high a valuation can burden successors with unsustainable financing loads, too low a valuation can endanger the retirement provision of the senior generation.
The specialty of growth-oriented succession: The valuation must consider not only the status quo but also the future potential. This requires a combination of various valuation methods:
- Asset-value oriented procedures: Valuation of existing assets and property values
- Income value procedures: Valuation based on current and projected earnings
- Multiplier procedures: Industry-specific valuation factors (e.g., EBITDA multiple)
- Future value models: Consideration of growth potential and future business models
A study by KPMG (2024) shows that the valuation mix for growth-oriented successions typically consists of 30% asset-value oriented, 40% income-value oriented, and 30% future-value oriented components.
Crucial here: The construction of flexible valuation models that link the purchase price to actual performance. According to Deloitte Private, earn-out models, where parts of the purchase price are performance-dependent, have proven successful in 76% of growth-oriented successions.
A practical example: The succession at Meissner Präzisionstechnik GmbH in 2023 was based on a base valuation of 6.2 million euros plus a performance-dependent earn-out of up to 3.8 million euros, linked to revenue and EBITDA targets for the next four years. This structure allowed the successor sufficient financial leeway for necessary growth investments while fairly compensating the transferor.
Tax-Optimized Transfer Models (as of 2025)
The tax optimization of succession remains a central topic but must be aligned with growth objectives. Under the current legal framework (as of 2025), the following models have proven particularly effective:
- Staggered share transfer with growth capital repatriation: The senior gradually transfers shares, with part of the purchase price remaining in the company as growth capital and only being distributed after achieving defined growth targets.
- Holding structures with growth financing: Establishment of a holding company that enables tax-optimized handover on one hand and serves as a financing platform for growth investments on the other.
- Hybrid foundation models: Combination of family foundation and operational company, where the foundation ensures long-term stability while the operational company maintains maximum entrepreneurial flexibility.
- Family equity structures: Establishment of a family-internal investment vehicle that finances both the core business and new growth initiatives.
A PwC analysis (2024) demonstrates that succession models with dedicated growth capital achieve an average 37% higher investment ratio in the first three years after handover – a decisive factor for long-term success.
Noteworthy: According to a study by EY (2024), 41% of growth-oriented family businesses in the succession phase already use hybrid financing models that combine traditional bank financing with alternative financing instruments like mezzanine capital or private debt.
Corporate Legal Structures that Promote Innovation
The corporate legal design of a succession significantly determines how innovative and growth-oriented a company can act after the handover. Traditional articles of association in family businesses often contain clauses that secure stability but inhibit innovations and growth initiatives.
According to an analysis by the Frankfurt School of Finance (2024), modern articles of association for growth-oriented family businesses should include the following elements:
- Flexible capital increase mechanisms: Simplified processes for raising growth capital without lengthy shareholder resolutions
- Innovation budgets: Firmly anchored budgets for R&D and innovation projects that cannot be sacrificed for short-term profit maximization
- Dual decision structures: Separation between operational decisions (maximum flexibility) and strategic basic decisions (family control)
- Incentive models: Possibility to involve managers and key employees in company success through virtual participations or similar models
- Exit options for minority shareholders: Clearly defined mechanisms for passive family shareholders to exit without endangering company growth
The figures support this approach: According to a study by Roland Berger (2024), family businesses with modern, growth-oriented articles of association achieve a 41% higher innovation rate and a 27% higher investment ratio than companies with traditional articles of association.
A successful example is Neumann Systemtechnik, which implemented a completely revised articles of association during the 2022 succession. This included a fixed innovation budget of at least 7% of annual revenue, simplified processes for strategic investments, and a virtual participation program for key employees. The result: Within 24 months, three new business areas were developed and revenue increased by 31%.
“The legal structure of a family business should not be primarily optimized for consistency, but for controlled evolution. The best articles of association are those that promote innovation without endangering the core values of the company.” – Dr. Alexander Koeberle-Schmid, Family Business Consultant
These financial and legal architectures form the structural foundation for sustainable growth strategies in the succession process. But what does successful implementation look like in practice? That’s exactly what the next section addresses, presenting concrete success stories.
Success Stories: How Growth Orientation Transforms Successions
Theoretical concepts gain persuasiveness when substantiated by real success examples. In the following, we present three case studies that exemplarily show how the paradigm shift from “inheriting” to “growth managing” has transformed family businesses.
Case Study 1: From Regional to National Player through Succession
Company: Berger Gebäudetechnik GmbH
Industry: Technical Building Equipment
Initial situation: Regional provider with 42 employees, €6.3 million annual revenue, strong dependency on direct orders from an 80km radius
Growth-oriented Succession Strategy:
When Timo Berger took over his father’s company in 2021, he faced a typical challenge: a solid but growth-limited business model. Instead of continuing the status quo, he implemented a systematic Revenue Growth Blueprint:
- Phase 1: Potential analysis with external support, identification of new market segments (especially Smart Building and Energy Optimization)
- Phase 2: Development of a digital lead generation strategy, building a content marketing program focusing on energy efficiency expertise
- Phase 3: Implementation of a CRM system with automated lead nurturing, building an inside sales team
- Phase 4: Development of a “Building Efficiency-as-a-Service” model focusing on recurring revenues
- Phase 5: Targeted acquisition of two small competitors in adjacent regions, integration into the digital sales process
Results after 36 months:
- Revenue increase from €6.3 million to €14.7 million (+133%)
- Expansion of business radius to national level for special projects
- Share of recurring revenues increased from 8% to 31%
- Employee count grown to 79 (+88%)
- EBITDA margin increased from 7.2% to 11.4%
Decisive Success Factors:
According to a detailed analysis by Roland Berger (2024), the key factors for success were:
- Systematic integration of content marketing and digital lead generation
- Development of the new service business model parallel to the existing project business
- Early integration of the father as “Senior Advisor” with a clearly defined role
- Consistent data orientation with monthly growth review
Case Study 2: Digitalization Leap in the Handover Phase
Company: Schneider Industriekomponenten AG
Industry: Component Manufacturing for Mechanical Engineering
Initial situation: Traditional company with 87 employees, €15.3 million annual revenue, fragmented product portfolio, minimal digitalization
Growth-oriented Succession Strategy:
As an external successor, Dr. Marc Fischer took over the company from the founder in 2020 as part of a management buy-in. He quickly recognized: The company had excellent products but antiquated processes and hardly any digital presence. His growth strategy:
- Phase 1: Digitalization assessment focusing on customer journey and internal processes
- Phase 2: Implementation of a digital product configurator and e-commerce portal for standard products
- Phase 3: Building a Customer Data Platform for systematic analysis of customer behavior and preferences
- Phase 4: Development of data-based product recommendations and automated cross-selling processes
- Phase 5: Launch of a Predictive Maintenance Platform as a new digital business model
Results after 48 months:
- Revenue increase from €15.3 million to €27.8 million (+82%)
- Share of digital revenues increased from 0% to 46%
- Conversion rate for existing customers increased by 31%
- Average order value increased by 24%
- Company valuation risen from €11.5 million to €35.2 million
Decisive Success Factors:
According to an analysis by the University of St. Gallen (2024), the key factors were:
- Focus on digital transformation while preserving product quality
- Step-by-step digitalization with clear ROI targets for each phase
- Targeted recruitment of digital talents while developing existing staff
- Consistent data usage for customer insights and product development
Particularly remarkable: The company transformed from a classic component manufacturer to a data-driven solution provider without compromising traditional quality values.
Case Study 3: Exploring New Markets as Succession Strategy
Company: Weber Medizintechnik GmbH
Industry: Medical Technology
Initial situation: Specialist for orthopedic aids with 34 employees, €4.8 million annual revenue, strong price pressure in core market
Growth-oriented Succession Strategy:
When Laura Weber joined her father’s company in 2019, it was clear: The core market offered little growth potential and was under increasing price pressure. Instead of intensifying the fight for market share in the core business, she developed a strategy for systematic market expansion:
- Phase 1: Systematic analysis of adjacent markets and identification of underserved niche segments
- Phase 2: Development of a Direct-to-Consumer strategy for selected product lines beyond the reimbursement market
- Phase 3: Building a digital marketing team focusing on SEO, content marketing, and social media advertising
- Phase 4: Establishment of a data analysis team for continuous optimization of the marketing mix
- Phase 5: Internationalization through e-commerce and targeted B2B partnerships
Results after 60 months:
- Revenue increase from €4.8 million to €11.2 million (+133%)
- Share of Direct-to-Consumer business: 37% of total revenue
- International revenue share increased from 3% to 28%
- CAC (Customer Acquisition Cost) reduced by 42% through data analysis
- EBITDA margin increased from 9.3% to 16.8%
Decisive Success Factors:
According to an analysis by KPMG (2024), the key factors were:
- Clear separation between traditional B2B business and new D2C channels
- Building a dedicated team for digital marketing without burdening core business
- Consistent use of data analytics to optimize marketing ROI
- Two-stage internationalization approach: first digital presence, then physical market entry
These case studies illustrate the transformative power of growth-oriented succession strategies. They also show that success doesn’t occur randomly, but is the result of systematic planning and consistent implementation.
A recurring element in all success stories is the use of external expertise – an aspect we’ll explore in the next section.
The Role of External Expertise in the Modern Succession Process
Growth-oriented successions are complex transformation processes that rarely succeed optimally without external support. The data is clear: According to a PwC analysis (2024), family businesses systematically incorporating external expertise in the succession process achieve on average 42% higher growth in the first five years after handover.
When the Right Time for External Consultants Is
The question of the optimal timing for involving external expertise is crucial for success. Too early involvement can lead to theory-heavy concepts that miss the company reality; too late involvement can mean that fundamental course settings have already been suboptimally executed.
According to a study by the WHU – Otto Beisheim School of Management, the following timings for specific expert types have proven optimal:
| Expert Type | Optimal Involvement Timing | Typical Contribution |
|---|---|---|
| Succession consultant / Process facilitator | 5-7 years before planned handover | Structuring the overall process, moderation between generations |
| Tax and legal advisors | 4-5 years before planned handover | Optimal legal and tax structuring |
| Strategy consultants | 3-4 years before planned handover | Potential analysis, development of growth strategy |
| Digital experts / Marketing specialists | 2-3 years before planned handover | Digitalization strategy, Revenue Growth Management |
| Change Management experts | 2 years before to 1 year after handover | Support for cultural/organizational transformation |
The critical awareness: The earlier fundamental course settings occur with external support, the greater the long-term impact. The Boston Consulting Group found that each year of earlier involvement of strategy consultants increases the success probability of succession by 12%.
Assembling the Optimal Consultant Team
Assembling the right expert team is critical to success. A Deloitte study (2024) identified that successful growth-oriented successions are typically accompanied by a multidisciplinary team covering five core competencies:
- Succession process expertise: Experience in structuring and moderating handover processes, ideally with psychological competence
- Tax and legal expertise: Specialized knowledge in corporate, inheritance, and tax law focusing on family businesses
- Strategic growth competence: Experience in developing and implementing growth strategies in mid-market
- Digitalization know-how: Practical experience in digital transformation of mid-sized business models
- Revenue Growth Management: Expertise in developing and implementing modern marketing and sales concepts
Noteworthy: According to a KPMG analysis, it’s not primarily large consulting firms that achieve the greatest impact in growth-oriented successions, but specialized boutique consultants with deep industry understanding and practical implementation experience.
A common mistake is the fragmented involvement of various experts without overarching coordination. McKinsey found that succession processes with a clearly defined “lead advisor” orchestrating the various expert inputs achieve a 37% higher success rate.
ROI Consideration of Consulting Services in the Succession Phase
The investment in external expertise is substantial – and must justify itself accordingly. An evidence-based analysis by Roland Berger (2024) quantified the Return on Consulting Investment (ROCI) for growth-oriented successions:
| Consulting Type | Typical Investment Range | Average ROI | ROI Main Drivers |
|---|---|---|---|
| Succession process guidance | 0.3-0.5% of annual revenue | 370% | Avoidance of conflict costs |
| Tax/legal consulting | 0.5-0.8% of transaction volume | 420% | Tax optimization, risk minimization |
| Strategic growth consulting | 0.7-1.2% of annual revenue | 310% | Identification of new growth fields |
| Digitalization consulting | 1.0-1.5% of annual revenue | 280% | Process efficiency, new business models |
| Revenue Growth Management | 0.8-1.2% of annual revenue | 340% | Higher conversion rates, higher CLV |
In the overall view: For professionally managed succession processes, the average ROI on the total investment in external expertise is 330% within the first four years after handover.
Crucial for a high ROI is the clear outcome orientation of the collaboration. PwC found that consulting mandates with explicit, measurable success metrics achieve a 47% higher ROI than mandates with vague objectives.
“The costs of external expertise are not expenses, but investments in the future viability of the company. The decisive factor is not the budget, but the strategic fit and the consistent implementation orientation.” – Prof. Dr. Peter May, Expert for Family Businesses
The systematic incorporation of external expertise is a competitive advantage for growth-oriented successions. It enables access to specialized know-how not available in the company and significantly accelerates the transformation speed.
With this knowledge, family entrepreneurs and their successors are optimally equipped to successfully implement the paradigm shift from “inheriting” to “strategic growth managing” and lead their companies sustainably into the future.
Frequently Asked Questions about Growth-Oriented Succession
How long should a growth-oriented succession ideally be prepared?
The ideal time horizon for a growth-oriented succession is 5-7 years. This is significantly above the German average of 2-3 years. Current data from the IfM Bonn (2024) shows that succession processes with 5+ years lead time have a 72% higher probability of success. The longer time horizon enables systematic implementation of growth initiatives, development of new business models, and gentle transition of responsibility. This extended timeframe is especially crucial for digital transformation and building new sales channels.
What competencies should modern successors bring or develop?
Successful successors today need a significantly expanded competency profile compared to previous generations. According to a Harvard Business School study (2023), the critical competencies are: 1) Digital Transformation (understanding of digital business models and their implementation), 2) Change Management (ability to design and moderate change processes), 3) Data-driven Decision Making (competence to make data-based decisions), 4) Ecosystem Thinking (understanding of platforms and cooperation models) and 5) Agility (ability to quickly adapt to market changes). Deloitte recommends a systematic development program for successors with external training, interim positions in other companies, and strategic projects in their own company.
How do I handle resistance to changes during succession?
Resistance to changes is normal in succession processes and even a sign that the change is substantial. According to current change management studies (McKinsey, 2024), the most effective strategies are: 1) Early involvement of key persons in strategy development to create ownership, 2) Clear communication of the growth vision with concrete benefits for all stakeholders, 3) Visible quick wins that demonstrate the benefit of change, 4) Systematic stakeholder management with personalized approaches, and 5) Explicit appreciation of previous successes and achievements to make clear that change does not mean criticism of the existing. Particularly effective is the establishment of mixed transformation teams from experienced employees and new impulse givers who jointly shape the change.
How do I identify the most promising growth areas for my company in the context of succession?
Identifying the right growth areas requires a structured approach. According to a Bain analysis (2024), the most effective methods are: 1) Systematic whitespace analysis along your customers’ journey to identify unfulfilled needs, 2) Adjacent Market Mapping – the strategic consideration of markets adjacent to your core business, 3) Trend Impact Analysis – evaluating how global and industry trends create new business opportunities, 4) Competitive Gap Analysis – identifying areas where competitors are weakly positioned, and 5) Customer Co-Creation – direct involvement of key customers in innovation processes. Companies that combine at least three of these methods identify highly profitable growth areas with 64% higher probability than companies relying on intuitive decisions.
What role does corporate culture play in the success of growth-oriented successions?
Corporate culture is a critical success factor for growth-oriented successions. According to an MIT study (2023), 67% of all growth initiatives in family businesses fail not due to strategic or financial factors, but cultural barriers. Successful successions are characterized by a conscious cultural transformation that includes these elements: 1) Development of an explicit growth mindset culture that promotes experimentation and calculated risk, 2) Establishment of feedback and learning loops supporting continuous improvement, 3) Implementation of “Psychological Safety” enabling open communication and error tolerance, 4) Focus on data-based decision processes instead of hierarchy or tradition, and 5) Shaping a culture of entrepreneurial responsibility at all levels. Companies implementing a targeted cultural development process parallel to strategic realignment achieve 41% higher implementation speed for their growth initiatives.
How can the success of a growth-oriented succession be measured?
Measuring the success of a growth-oriented succession requires a balanced indicator system that goes beyond traditional financial metrics. According to a BCG analysis (2024), a Balanced Scorecard approach with five dimensions should be implemented: 1) Financial Performance (revenue growth, EBITDA development, ROI), 2) Market Perspective (market share development, exploration of new markets, diversification of revenue sources), 3) Innovation Strength (number of new products/services, revenue share of new offerings, time-to-market), 4) Organizational Development (employee satisfaction, fluctuation, development of digital competencies) and 5) Long-term Value Development (company valuation, brand perception, resilience to market changes). The consultants recommend collecting these indicators at least quarterly and discussing them in the management team to enable continuous adjustment of the growth strategy.
How do I optimally finance growth investments during succession?
The optimal financing of growth investments in the succession process requires a balanced mix of different instruments. According to an EY study (2024), the following strategies have proven effective: 1) Hybrid financing models combining traditional bank loans with alternative instruments like mezzanine capital or private debt (enables 30-40% higher investment volumes), 2) Earn-out structures in company acquisition that link part of the purchase price to future performance (frees capital for investments), 3) Asset-based financing like sale-and-lease-back or factoring (activates tied capital), 4) Strategic partnerships and joint ventures with capital providers who also bring know-how, and 5) Subsidies and special succession financing programs (like KfW succession funding). Companies combining at least three of these instruments achieve a 47% higher investment ratio than companies limited to traditional bank financing.
What role does digitalization play for successful successions in 2025?
Digitalization has become the decisive growth driver for succession processes in 2025. A comprehensive Accenture study (2025) shows: Companies combining their succession with profound digital transformation grow on average 2.7 times faster than companies primarily continuing to work analog. The four most important digitalization levers are: 1) Customer Experience Transformation – the complete digitalization of the customer journey with personalized interactions, 2) Data-Driven Decision Making – the implementation of analytics systems for data-based decisions at all levels, 3) Digital Product Enhancement – the enrichment of physical products with digital services and features, and 4) Operational Excellence through digital process optimization and automation. Remarkable: Digitalization acts not only as a direct growth driver but also as a catalyst for cultural change. Companies investing at least 12% of their revenue in digital transformation as part of succession experience 53% higher willingness to change throughout the organization.
How can a conflict-free transition between generations be ensured?
A completely conflict-free transition is rarely realistic, but constructive conflict management is possible. The Witten School of Management identified in their 2024 study five core practices for successful transitions: 1) Explicit clarification of expectations – written documentation of mutual expectations, goals, and boundaries, 2) Clear role separations with written areas of responsibility and defined interfaces, 3) Establishment of a neutral advisory board or mediator as an instance for conflict moderation, 4) Regular structured dialogue and feedback formats between generations, and 5) Joint external activities promoting understanding for the respective perspective. Particularly effective is the combination of structural measures (clear governance) and emotional/communicative elements. The study shows: Families investing at least 24 hours per year in moderated joint reflection reduce the risk of escalating conflicts by 68%. Also crucial is the early involvement of all relevant family members – not just direct successors – in the information and decision process.
Which succession models are particularly suitable for innovation-oriented companies?
For particularly innovation-oriented companies, flexible, hybrid succession models have proven superior. A Roland Berger study (2024) identified three particularly successful models: 1) The “Dual Leadership Model” – the combination of a family-internal successor with an external manager bringing complementary competencies, 2) The “Family Venture Model” – the spin-off of innovative business areas into separate units under the leadership of the successor generation, while the core business initially remains under the senior generation’s leadership, and 3) The “Staggered Transition Model” – a staged transition where the successor first takes responsibility for innovation and growth areas, while traditional business areas follow later. The data clearly shows: Family businesses implementing one of these flexible models achieve a 58% higher innovation rate and 42% stronger growth than companies with classic “one-step transitions”. Crucial for success in all models is the clear separation of responsibilities and creation of defined spaces for innovative developments.
