Succession in the Mittelstand: turning legacy into a future strategy
In the heart of Germany’s economic engine, the Mittelstand stands as a symbol of resilience, craftsmanship, and long-term commitment. But behind this strength often lies an unspoken fragility, the challenge of succession.
In many mid-sized, family-owned firms, leadership transitions are emotional, uncertain, and too often delayed. Founders linger after stepping back, heirs question their place, governance remains informal, and critical decisions are postponed in the name of tradition.
Without a clear plan, even the most robust companies risk drifting.
Understanding the real stakes
Succession is never just an operational shift. In the Mittelstand, it touches on identity, pride, and intergenerational relationships. Many firms operate with:
personalised leadership styles shaped over decades
decision-making built on trust, not formal processes
a fusion of family and business that resists separation
These characteristics bring strength, but also complexity when it’s time to hand over the reins.
What can go wrong
From our experience at CB-Advisory, late-stage interventions often reveal familiar patterns:
internal friction between continuity and innovation
paralysis at key decision-making levels
a disconnect between market ambitions and leadership readiness
power dynamics that remain unresolved beneath formal titles
The cost is not just missed opportunities, but lost momentum and long-term instability.
Laying the groundwork for sustainable succession
Supporting succession means much more than finding a successor. It’s about building a framework that balances legacy with adaptability.
Our work typically involves:
clarifying roles, responsibilities, and authority structures
helping families and boards separate emotion from strategy
facilitating alignment across generations and key stakeholders
We bring not only recruitment insight, but also strategic and interpersonal understanding tailored to each company’s DNA.
How we work: from complexity to clarity
Every transition includes three dimensions we map carefully:
formal structure, such as ownership and governance
informal networks, including influence and founder presence
future scenarios, where succession may challenge strategic direction
By bringing these layers into focus, we help companies move forward with purpose and unity.
Leadership succession is not just about preparing a next CEO, it’s about preparing the company for its next chapter. If you’re navigating intergenerational change, the question isn’t if you need a roadmap, it’s how soon you start drawing it.
