Morning Briefing Podcast: Biontech: Der Kampf ums Erbe der Gründer / USA/China: Der Kampf wird härter

Good morning, valued readers. German family-owned businesses are generally reliable enterprises, rooted deep in the provinces while successfully operating on the world stage. They tend to adopt conservative financial practices and remain firmly under the control of the founding family, regardless of circumstances. However, this steadfastness may not be the unwavering golden rule for all German family businesses.

Our business and finance reporters have discovered that many of these family enterprises are increasingly opening up to external funding and professional structures. This transition is not driven by necessity, but rather by external pressures that make professionalization unavoidable. Digitalization and Artificial Intelligence demand significant investments, making it increasingly difficult to modernize with outdated systems.

The succession pressure is mounting, as the third generation often has different interests. Geopolitical conflicts and uncertain conditions further exacerbate trade barriers. In Germany, there are over 800 transactions per year where family-owned companies change ownership for the first time. In 2018, the share of financial investors in these transactions was under ten percent, which rose to nearly a quarter by 2025. This shift may not be a negative development after all.