When There Is No Replacement - More And More Businesses Have To Close

More and more companies are being forced to close for various reasons. The most common reason, however, is a lack of succession. Around 90% of all companies in Germany are owned by families and have been in existence for generations. If there is no follow-up, the only option is usually closure. This is where Surplex.com offers a good platform for selling the business inventory.

Only half of all owners’ hand over their business to their own children or family members. There are many reasons for this, such as more opportunities to develop outside the business or fear of the high financial risk. But a lack of interest in the trade is also one of the reasons. The concern about finding a suitable successor is leading to more and more business closures, as often no suitable candidate is found in a timely manner.

Family business - what does that mean?

In a family business, a family or several family members own a company that is managed jointly. This usually leads to close emotional ties and a strong emphasis on tradition. They can vary in their size, from small businesses to large corporations. Family businesses can be found in various sectors.

Problems with succession

Over 550,000 companies want to find a successor by 2026. Around 190,000 businesses are planning to exit the market without a successor. Over 54% of entrepreneurs are over 55 years old and are therefore entering a phase in which they need to think about company continuity. One of the biggest problems here is finding a suitable candidate, as the baby boomer generation is followed by significantly weaker generations. This means there is a lack of urgently needed new blood.

The search is being conducted within the family, in the company or externally. Finding a successor within the family is becoming increasingly difficult. Traditionally, the new owner is the son or daughter. However, it is becoming increasingly apparent that external options appear more attractive, for example due to better salaries or promotion opportunities, and there is usually less interest in taking over the family business in advance. As a result, more and more people are deciding against taking over the business. If the family decides to leave, the only option is usually to look outside the group. But here, too, difficulties arise. Three out of four owners cannot find a suitable external replacement or see obstacles in the search. If no one is found, there is usually only the last choice - winding up the business.

Surplex - a solution for companies

Closing a business involves numerous challenges, such as clearing out the company premises and warehouses, disposing of waste properly and dealing with official appointments. In addition to legal requirements that must be met and staff redundancies, there is usually one item left on the list. The sale of company equipment. Companies find it difficult to find a buyer, as they usually have little or no knowledge of the market for used machinery and therefore find it difficult to estimate the value of their machines. In addition, most independent sellers look for buyers in their immediate area, which considerably limits the number of buyers. However, the process of selling plays a major role, as it not only allows them to get rid of the machines, but also to receive a high income.

Companies such as the industrial auction house Surplex can be a support and a good partner in this process. It does not matter whether you are a medium-sized company or a small workshop. Surplex will find a suitable solution and suitable buyers for every company. There are two possible ways for companies to sell their equipment, either via the auction platform or Surplex buys the entire inventory at a fixed price. After the machines have been sold and collected by the buyers, the halls and buildings are handed over to the owner in a clean and tidy condition. Understandably, the liquidation of a business involves a large amount of work and requires a great deal of organization. However, with Surplex, companies have a competent partner at their side.