In the vast majority of cases, the financing of SMEs through bank loans is linked to the personal liability of the owners or managing partners. This is a standard collateralisation of commercial banks and savings banks, which is often justified with “If you don’t believe in your company, how can we as a bank? For the guarantor, the scope of liability resulting from the legal form of the company extends to the private sphere. If this constellation is not actively shaped, experience shows that there will be far-reaching consequences for the guarantor, but also for the company. In addition to liability for the company’s debts, there may also be restrictions on succession planning. The focus is on a clear financing strategy that includes the structuring of the liabilities side of the company as well as the conditions of the debt capital – including interest, collateral and covenants. Read more
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“Financial communication” – many SMEs see it primarily as a task of listed companies. But it is of great importance, especially for small and medium-sized enterprises. Especially when a company is in a difficult economic situation. Companies that proactively implement transparent bank communication and thus build up a good relationship with their bank (creditor relationship) have a much better standing with their bank. Targeted financial communication with regular reporting improves capital access and conditions. It strengthens the bank’s confidence in its own company and can pave the way for better support overall.
Finding staff, retaining staff: What used to be an everyday routine is now a supreme discipline in management and HR departments. More than ever, staff retention is an important key to corporate success. And in the highly competitive labour market, it is a real challenge, especially for small and medium-sized enterprises. Attractive and transparent development paths play a key role in employee retention.
On 16 December 2022, the Whistleblower Protection Act (HinSchG) was passed in the Federal Parliament. Based on the Whistleblower Directive, it guarantees whistleblowers better protection in their professional environment against reprisals such as dismissal or defamation. The next plenary session of the Bundesrat is on 10 February 2023. If it approves the HinSchG, the law can be promulgated in February. Since a law comes into force three months after promulgation, in this case it would probably be the end of May. In the first stage, the law will apply to all companies with 250 or more employees and, from 17 December 2023 to all companies with at least 50 employees.
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The press releases are piling up: small and medium-sized companies are increasingly experiencing economic difficulties – many have concrete closure plans and are implementing them. The offers for sale are increasing. Energy shock, brittle supply chains, shortage of skilled workers and inflation are the reasons. Price increases are not only hitting their own profit and loss statements, they are also causing customers to hold back and lower sales. An analysis by the information service provider CRIF sees an increased risk of insolvency for around 300,000 companies in Germany. That is around 10% of the companies in Germany. The industries that are particularly energy-intensive have already shown significant increases in insolvency cases. This situation calls for attention and caution.
The planning of a company succession, the sale of the company or the departure of a shareholder: The company valuation can become relevant for very different reasons. Basically, the company value is an important criterion when a company is up for succession. The company value provides important guidance at all stages of the succession process: If an entrepreneur knows the company value at an early stage and if it turns out to be lower than desired, he may have sufficient time until the time of the planned sale to take suitable measures to increase the value. If the entrepreneur is weighing up various succession options, the company valuation is an important factor in the decision-making process. For example, in order to clarify whether the sum would be sufficient as retirement provision. Or to ensure fair distribution within the family succession. Or to discuss what tax effects an internal family succession would have. When it comes to a concrete sale, the company valuation is a critical decision-making basis for the negotiation talks.
In many medium-sized family businesses, a succession is due in the foreseeable future. In most cases, the company is to remain in family ownership. But not all daughters and sons are talented entrepreneurs. Or simply no one wants to do it. Then an external manager can be appointed.
When an external manager takes over the management of a family business, there are many challenges – for both sides. At the same time, the cooperation also holds many opportunities: External managers can professionalize the company with their experience and bring fresh momentum into the business. For the collaboration to succeed, a systematic approach is advisable – starting with the onboarding phase. Read more
The corporate world is changing dynamically and with it the challenges for leadership and management. Managers are constantly confronted with new tasks as a result of the permanent changes. In order to successfully cope with change, focused further development is essential. Structured development of executives is best achieved using an individually designed development model. It ensures that leaders are best equipped for current and future business tasks and challenges.
Systematic development of executives in medium-sized companies is currently the exception rather than the rule. Leadership development therefore offers many companies a great, previously untapped opportunity to strengthen their team, find new talent and successfully move the company forward even in phases of major change.
Supervisors play a Key Role in Employee Retention
The structured development of managers is an important basis for the company’s future – and for staff retention. According to a recent Personio study*, 46% of employees in small and medium-sized companies across Europe are planning to change jobs in the near future. One of the most important reasons cited for this is a lack of appreciation. Leadership style, social skills, empathy and corporate culture are key factors in determining how much employees identify with the company and feel comfortable there. This means that supervisors play a particularly important role in the onboarding process.
Success is no coincidence
Reflecting on oneself, deepening one’s own competencies, learning, networking, motivating … In times of such rapid and major changes, a modern manager is characterized above all by the willingness and ability to develop further. This applies to younger managers as well as to experienced ones. The concrete design of the personal development model depends on many individual factors such as the management level, the area of responsibility or the personal experience values. A younger manager who wants to prepare optimally for taking on greater management responsibility will set completely different priorities in his development model than an experienced manager who wants to drive major change processes in the company. The earlier a development model for leadership and management is implemented at all levels, the more promising the results. After all, developing leaders systematically takes time and is an ongoing process.
Leadership Development with Structure, Empathy and 360° View
How can a manager be developed in a goal-oriented manner? When implementing the development model, it is important to look at the individual framework conditions, corporate culture and goals and link them to the internal guidelines for managers. For this purpose, we develop an agile development model. First, the initial situation is analysed and relevant competencies as well as strengths and weaknesses of the executives are identified. On this basis, development areas and goals are defined, and an individual leadership development model is elaborated. The development model is tailored to the individual starting situation of the executive in order to ensure optimal learning and successful transfer to practice. It will initially be launched as a pilot project and, after the test phase, will be successively implemented as a professional infrastructure in the form of coaching, training, and learning-on-the-job elements. Managers can thus achieve their individual development goals in a targeted and efficient manner. The training effects are permanently evaluated and assessed to ensure the best possible development results.
THE MAK`ED TEAM sees leadership development as an essential part of successful business development. We develop agile leadership development models that are easy to implement and focused. Executives benefit from our high level of expertise in corporate business and our interdisciplinary, experienced team.
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*Source: Personio study “The Great Value Shift”, 2022
One comes, one goes – and if one doesn’t go, one is too many. This statement already says a lot about why succession in family businesses is demanding. It takes a successor who is willing to take on responsibility and it takes an entrepreneur who is willing to put responsibility in the hands of his successor. The path to succession is crucial because it involves answering many questions. Systematically addressing the issue of succession in the company at an early stage ensures success – even if the result will most likely be different than expected.
Sooner or later, undesirable developments in a company become apparent in its earnings situation. Once there, it is usually only a matter of time before the company’s liquidity is also affected. So, if there are negative deviations in sales and/or earnings compared to corporate planning, if the results are below those of comparable companies or even negative, it is imperative to take countermeasures. Precisely because time is usually of the essence in such cases, it is crucial to proceed thoroughly and professionally.
