Focus on medium-sized companies

Focus on medium-sized companies

More than 90% of all companies in Germany are medium-sized ones, among them many family-owned businesses and international world market leaders in their respective segments. No other country in the world has as many global market leaders as Germany. Medium-sized companies account for almost one in two jobs in Germany and every day contribute to the best brand Germany has to offer: „Made in Germany“.

The factors of success of German mid-sized companies – quality, innovation and identification – are therefore no short-lived advertising concept, but firmly rooted in the “DNA” of many companies.

Another factor may be added to the aforementioned factors of success: staying power – the ability to persevere and to successfully master challenges.

At the same time, mainly three basic conditions are changing:

  1. The competition becomes increasingly international and fiercer. Size and international subsidiaries become more and more important.
  2. Due to the increasing network of information new technical standards are created (keyword: „Industry 4.0“) which are shaped by and tailored to large corporations. Depending on their market position many medium-sized companies that today are still successful will in the medium term be forced out of the market.
  3. Numerous owners of medium-sized companies are approaching an age when corporate succession should be initiated. Whilst the active entrepreneur who developed the company, lives for the company and subordinates everything else to it and is at the same time the top strategist, innovator, sales person and quality manager, the generations that follow have increasingly different interests and are therefore not willing or able to take over the helm.

In addition to self-induced growth, the required size and international presence could possibly also achieved through strategic acquisitions. On the other hand, the timely divesture is the right entrepreneurial decision when it comes to some upcoming technological upheavals, but particularly the absense of a suitable successor.

With the dedicated sale to the right partner one’s life’s work, the jobs, but also the wealth acquired in recent decades could be secured.

The strategic decisions regarding acquisitions or the sale of the company require careful planning outside the day-to-day business. The implementation requires a partner who is familiar with the particular factors of success. The team of Deutsche Mittelstandsfinanz has placed its focus particularly on this.