Review: The future of family businesses and wealth in Germany and Europe
- Nikita Gontschar
- Apr 8, 2022
- 2 min read
Updated: 1 day ago
Family businesses are the backbone of the German and European economy. They stand for innovation, tradition, and sustainable growth – while at the same time navigating a wide range of new challenges: digitalisation, ESG, geopolitical risks, and complex succession issues. Together with the bdvb – Bundesverband Deutscher Volks- und Betriebswirte e.V., we discussed these topics on 8 April 2022 at the Villa Bonn in Frankfurt with guests from business, academia, and advisory.
The event brought together impulses from both research and practice:
Prof. Dr. Nadine Kammerlander (WHU): Family businesses – a driving force for the sustainable development of our economy
Dr. Nikita Gontschar (GxG Legal): Successfully shaping generational transitions
Dr. Stefan Liniger (Kaiser Partner): Preserving and growing family wealth over the long term
From the dialogue, four key questions emerged for entrepreneurial families, family offices, and their advisors:
Asset protection & portfolio management:
How can family wealth be safeguarded in volatile times – legally, structurally, and on the capital markets? Resilient set-ups separate liability sources (operating vs. holding), maintain liquidity buffers, and align allocations with defined risk budgets rather than gut feeling.
Succession & Next Gen:
Which models work in the long term? Successful succession combines early governance (family constitutions, committees, competency profiles) with targeted preparation of the next generation – and realistic timelines. Transitions rarely fail due to law, but more often due to expectations, roles, and communication.
ESG & responsible investing:
ESG is no longer a “nice to have,” but directly impacts reputation, financing costs, and deal access. The key is translating goals into measurable metrics (e.g. CO₂ intensity per unit of revenue, supply chain KPIs) and investment guidelines that anticipate rating and regulatory risks without stifling opportunities.
Family offices & internationalisation:
As complexity grows, so do requirements for deal sourcing, manager selection, and governance. Emerging trends include co-investments through club deals, thematic satellite mandates (e.g. infrastructure, private credit), and cross-border structures that resolve tax, regulatory, and liability issues effectively.
The contributions made clear that successful family businesses above all rely on strong governance: well-organised succession, transparent decision-making processes, and the early involvement of the next generation. Only in this way can conflicts be avoided and wealth preserved over the long term. At the same time, portfolio resilience is becoming increasingly important – through clear risk budgets, diversification, and separation of liability sources. ESG criteria are no longer optional but directly influence financing, reputation, and access to investment opportunities.
The key takeaway: Preserving family wealth for future generations requires a combination of robust legal structures, professional portfolio management, and an open family culture. Sustainability, internationalisation, and next-gen development are the decisive factors for long-term viability.
Links:
