ETA Program Launches to Tackle German Company Succession Crisis
The Entrepreneurship through Acquisition (ETA) program has launched to tackle the succession challenge in German companies. This initiative, backed by partners like Novastone Partners, Deutsche Bank WM, and Tengelmann Growth Partners, aims to support businesses in their transformation and foster a Germany of entrepreneurs.
The ETA Hub, a key part of this program, promotes knowledge transfer and connects successor companies with investors. It also builds bridges between business, academia, and politics. Christian Mohr, Chief Customer Officer of UnternehmerTUM, highlights the urgency of this issue, stating that the succession gap in German companies is a major economic challenge.
By 2026, over 190,000 small business ideas across Germany, employing over 2.5 million people, are scheduled to change hands. Around 231,000 small and medium-sized businesses are planning to close by the end of 2025, with 67,500 more than the previous year. Around one third of medium-sized businesses plan to replace their management within the next three to five years, including 2026. The closure of these businesses threatens jobs, regional value creation, and innovative strength.
The ETA program, with its partners and initiatives like the ETA Hub, is stepping in to address this critical issue. It offers Entrepreneurship through Acquisition to help entrepreneurs acquire existing companies and secure their future. With many owners over 60 and only half having found a concrete succession solution, the program's support is timely and crucial.
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