Chief Executive Officer, DKSH Holding
Erfolgsfaktor Unternehmensnachfolge: ButzConsult bei Center TV, Düsseldorf 21.04.2015
Stefan Butz, Geschäftsführer von ButzConsult, spricht mit Center TV über den "Erfolgsfaktor Unternehmensnachfolge" und die große Zahl an Unternehmen, die am Mittleren Niederrhein und deutschlandweit aktuell auf Nachfolgersuche sind.
About Stefan Butz
In a 2015 interview with Center TV, Stefan Butz, then managing director of ButzConsult, discussed the findings of a study on business succession conducted with the Chamber of Industry and Commerce for the Middle Lower Rhine region and the Niederrhein University of Applied Sciences. Butz stated that 36% of business owners over the age of 55 were unable to find a successor, and that fewer than 50% of businesses were being transferred within the family. He described these figures as applying not only to the region but to Germany as a whole. Butz advised that business owners must "have the courage to let go" and actively seek a successor, whether internally among employees or externally through chambers, associations, banks, or consultants. He noted that a failed succession could affect employees and might only be compensated for by new business formations.
Transcript (14 segments)
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Christian Zellen0:00
In the next few minutes we will focus on the Düsseldorf economy. Many companies have a problem: they often cannot find successors for the top management. A new study now draws attention to this. It shows that almost 40% of companies in the Lower Rhine region cannot find a successor. Christian Zellen discusses this with Stefan Butz, whose company was involved in creating this study. Yes, Mr. Butz, when we hear this number, 40% of companies in the Lower Rhine searching for a successor, that is truly a shocking number. How does the situation actually look at the moment?
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Stefan Butz0:38
Yes, we conducted a study on this topic together with the Chamber of Industry and Commerce of the Middle Lower Rhine and the University of the Lower Rhine. It is indeed a pressing issue, the topic of business succession. And yes, it turns out that 36% of entrepreneurs currently cannot find a successor, and we are talking about entrepreneurs older than 55. Another important finding is that only a few companies, less than 50%, are transferred within the family. And these are numbers that, by the way, apply not only to this region but to all of Germany.
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Christian Zellen1:14
This is the study 'Success Factor Succession'. That is the study that you have written. So how is it actually, or what does this situation mean for the individual companies? Is the end of a company preprogrammed if there is no successor?
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Stefan Butz1:29
One must of course differentiate a bit. If we say almost 40% find no successor, that does not necessarily mean that these companies will be liquidated, but there is definitely a need for action. That means one must tackle the issue, one must have the courage to let go as an entrepreneur and do something to find a successor. And if the successor does not come from one's own family, one must search externally. There are various ways, options, solutions, including getting help with that.
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Christian Zellen1:59
Hmm, are there not so many people offering to be successors for business leadership anymore, or where does this problem originate?
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Stefan Butz2:08
It is of course the case that we all know we have a demographic problem: more and more older people, fewer and fewer younger people. And that forces us to look for alternative solutions, to think outside the box. We also often have the case that young people, the children, the daughters, who were educated internationally, and perhaps it is no longer an option to return to the family business in the Lower Rhine if they have been traveling all over the world. That is certainly also an issue. But there are a number of people who have retired after many years of corporate experience, for example, who deliberately want to join a medium-sized or smaller company. And one must search for them, and then one has a good chance to solve the issue. But a certain portion will certainly be forced to give up.
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Christian Zellen2:58
Now we have talked a lot about the entrepreneur side. Let's also talk about the employee side. What consequences does this have for the employee at the Lower Rhine location if such a succession issue is perhaps not resolved?
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Stefan Butz3:14
It is of course also an employee issue. If such a company has 10, 15, 50 or 100 employees, each individual is potentially affected by an unsuccessful succession and must look for alternatives. That means there must also be the possibility to look within the company: is there perhaps an employee who is suitable? That must be promoted by the entrepreneurs, also presenting internal succession as an option. And one must say that in many cases, an unsuccessful succession can only be compensated by 15 new start-ups. And one must realize what that actually means for the individual people.
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Christian Zellen3:56
Now you have already said in the succession question that in many family businesses, it is often the case that the son or daughter somehow joins the company. But that is no longer as common as it might have been one or two generations ago. How come? Has our society changed so much that for many successor generations it is no longer interesting to actually take over and continue the company from the father, mother, or grandfather?
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Stefan Butz4:27
You mentioned it. Yes, that may be one reason, although being an entrepreneur can be very, very exciting. We have so many different industries, we have technologically appealing companies in Germany. We see many companies where we think, man, we would love to join ourselves. Actually hard to understand, but I think it is so. I think a part of the children of entrepreneurs is simply perhaps too internationally oriented, too corporate-oriented in their education, and then the parental business is perhaps no longer so sexy. But that may be only part of the reasons. It could also be that people say it's all too uncertain, too much responsibility. If I have to run a company with 50 or 100 employees, the economic situation is uncertain, and one may no longer want to take on that risk or responsibility. The entrepreneurial risk is certainly one of the main reasons. One must be willing to take it on. One certainly does not always have good years as an entrepreneur, but on the whole, we stand well, and that applies not only to our region but especially for our region. Many SMEs have great numbers and actually have a good future perspective. Therefore, it is somewhat understandable, but that may play a role in not wanting to take the reins.
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Christian Zellen5:46
So this risk, what solutions are there? You already said clearly: look beyond the horizon, not only in your own family, perhaps also externally, among your own employees, maybe see if someone emerges who could take over the business succession. Are there other ways and possibilities for entrepreneurs?
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Stefan Butz6:01
So one must search for them. There are always various options. Clearly, if internal succession from within the company or from the family does not work, one must search externally. There are many, many contacts: whether it's the local chambers, associations, banks, or consultants to find the right people. And surprisingly, there are many people in the market who are consciously looking for interesting companies and who are suitable. Then there are, of course, the much-discussed private equity firms, of which certainly not all are portrayed negatively as locusts, but there are also very interesting companies that have consciously focused on SMEs.
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Christian Zellen6:40
Stefan Butz, I would like to thank you very much for being our guest here on the show. Thank you for your assessment, thank you for the conversation.
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Stefan Butz6:46
I also thank you very much.