AECM Annual Event in Antwerp 2019 (12/15 June) Holger Wassermann, Professor for Controlling and Accounting, FOM University of Applied Science, Berlin Sascha Frohwerk, Professor for IT-Management, FOM University of Applied Science, Berlin

1. SUCCESSION MONITOR
SUCCESSION:TRANSPARENCY FOR GERMAN SMES
Prof. Dr. Sascha Frohwerk | Prof. Dr. Holger Wassermann
aecm annual event | Antwerp | 13th June 2019

2. THE STARTING POINT
Germany is facing a wave of need for corporate
succession
Of about 3.6 million companies, about 99% are
SMEs
Because of missing official statistics so far no
reliable numbers to company successions available
Estimates vary between 19 and 102 thousand
company successions per year*
2
* Kay, R.; Suprinovic, O.; Schlömer-Laufen, N.; Rauch,A. (2018), p. III.
The succession monitor helps to close this
knowledge gap.

3. THE EXAMINATION OBJECTS
Companies
Predecessors
Transactions
Successors
 The successor monitor includes 4 objects in the
investigation, which are examined by region (state /
county) and industry (section, department):
 Persons (Predecessors und Successors):
Age, Gender
 Companies:
Employees, Development, Financials
 Transactions:
Form, Components, Multiples
3

4. GENDER DISTRIBUTION AND DEVELOPMENT Successors
4
685
854 869 908
1.006
955
216 244 267 239
292 290
0
200
400
600
800
1.000
1.200
2013 2014 2015 2016 2017 2018
Number of Successors with guarantee institution support
2013 - 2018
male female
male; 5.277;
77,3%
female; 1.548;
22,7%
Successors 2013 - 2018 by gender

5. PROPORTION OF
FEMALE SUCCESSORS
 The proportion of female
successors is very different in
the federal states.
 Their share is below the
proportion of women in
management positions and well
below the share of the working
population.
0 - 16,6 %
16,6 - 18,2 %
18,2 - 24,1%
24,1 - 26,2 %
26,2 - 28,6 %
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5
Successors

6. AGE OF SUCCESSORS
0%
5%
10%
15%
20%
25%
Proportion of successors by age
group
male female
38,7
39,7
40,7
40,4
43,1
40,1
40,4
38,8
40,5
40,0
39,1
40,4
39,5
39,9
40,4
37 38 39 40 41 42 43 44
Baden-Württemberg
Bayern
Berlin
Brandenburg
Bremen*
Hamburg
Hessen
Mecklenburg-Vorpommern
Niedersachsen
Nordrhein-Westfalen
Rheinland-Pfalz
Sachsen
Sachsen-Anhalt
Schleswig-Holstein
Thüringen
Average age of successors by state
6
* Bremen: Limited informative value due to a relatively small number of cases
39,9
39
38,9
38
37 38 39 40
AverageMedian
Age of successors: average
and median
male female
Average
39,6
Median
39,0
Successors

7. TRANSACTIONS
Transactions
Successors
7
71%
23%
6%
29%
County and federal transitions*
Same County Same State Different States
* Presented only for companies from Baden-Württemberg
42%
6%
38%
10%
5%
61%
10%
18%
5%
6%
Individual company
Private company (GbR)
Company with limited liability (GmbH)
GmbH & Co. KG
Other
Legal forms of the transferred companies by gender of the
successor
male female

8. AGE OF PREDECESSORS Predecessors
8
* Bremen: Limited informative value due to a relatively small number of cases
14,0%
17,9%
26,7%
28,8%
7,4%
4,6%
0,6%
0%
5%
10%
15%
20%
25%
30%
35%
50-54 55-59 60-64 65-69 70-74 75-80 >80
Share of predecessors by age group
Average 62,7, Median 63
63,1
61,0
60,6
62,7
62,8
63,4
65,1
61,6
62,5
63,1
63,0
62,8
58,4
63,3
62,0
81
78
90
80
71
93
82
80
79
88
80
72
77
80
74
45 50 55 60 65 70 75 80 85 90 95 100
Baden-Württemberg
Bayern
Berlin
Brandenburg
Bremen*
Hamburg
Hessen
Mecklenburg-Vorpommern
Niedersachsen
Nordrhein-Westfalen
Rheinland-Pfalz
Sachsen
Sachsen-Anhalt
Schleswig-Holstein
Thüringen
Age of predecessors bay state: average and maximum
Average
62,7
Median
63,0

9. INDUSTRIES AND SIZE CATEGORIES Companies
9
0%
2%
4%
6%
8%
10%
12%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Shares of companies with up to 20 jobs
15,4%
11,6%
7,2%
5,6%
5,0%
4,8%
4,6%
4,3%
4,1%
3,1%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Retail (without motor vehicle)
Construction
Gastronomy
Healthcare
Motor vehicle trade and maintenance
Manufacture of metal products
El. personal services
Wholesale (without motor vehicles)
legal and tax consultancy
accommodation
Shares of the industries in sample and population
sample population

10. SUCCESS MODEL SUCCESSION?
10
Companies
Transactions
Average 1,6, Median 1,1
Sales decreased
33,0%
Sales increased EBIT decreased
55,0%
EBIT increased
Average +12,4,TEUR Median -13,5 kEUR

11. SHARE OF PURCHASE PRICES IN THE FINANCINGVOLUME
86,9%
48,2%
98,3%
68,9%
77,3%
88,7%
75,0%
91,3%
85,9%
89,3%
86,0%
92,1%
88,6%
61,2%
69,4%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Baden-Württemberg
Bayern
Berlin
Brandenburg
Bremen*
Hamburg
Hessen
Mecklenburg-Vorpommern
Niedersachsen
Nordrhein-Westfalen
Rheinland-Pfalz
Sachsen
Sachsen-Anhalt
Schleswig-Holstein
Thüringen
Share of the purchase price in the financing volume
Purchase price Other components
11
* Bremen: Limited informative value due to a relatively small number of cases
Companies
Transactions

12. THANKYOU
WE LOOK FORWARD TO THE DISCUSSION!
Contact Person
Prof. Dr. Holger Wassermann
holger.wassermann@fom.de
Scientific Director
KCE KompetenzCentrum Entrepreneurship & Mittelstand
FOM Hochschule für Oekonomie & Management gGmbH
Bismarckstr. 107 | 10625 Berlin | GERMANY
Tel. +49 30 2089875-80 | Fax -99