A record number of business owners are seeking to transfer ownership of their companies, according to a new report from the German Chamber of Industry and Commerce (DIHK). Simultaneously, the pool of potential successors remains critically low, creating a growing concern for the stability of the German economy.
The DIHK report, cited by the “Rheinische Post” indicates a surge in entrepreneurs seeking to disengage from their businesses due to factors ranging from retirement to evolving business priorities. Regional Chambers of Industry and Commerce (IHKs) reported nearly 10,000 consultations related to business succession in 2024 – a 16% increase compared to the previous year. Current projections suggest that over half of these succession requests risk remaining unfulfilled, largely due to a shortage of interested parties, numbering approximately 4,000.
The situation is particularly acute within the hospitality and retail sectors, where the supply of businesses seeking new ownership significantly outnumbers potential successors by a factor of more than three. Similar imbalances are observed in the service and IT industries, with the number of businesses available for acquisition exceeding the number of interested parties engaging in consultations by a factor of more than two.
DIHK President Peter Adrian expressed concern to the “Rheinische Post” stating that a core foundation of the German economy is increasingly at risk. He advocated for targeted interventions focusing directly on the succession process itself, emphasizing the need for simplification of related regulations and administrative procedures to facilitate smoother transitions.
