Collective medium sized – the alternative to corporate sales

Why to transfer burden on only one shoulder?

You are a medium-sized entrepreneur, your business is going well and eventually you reach to a point where you are dealing with the topic of retirement. Maybe you plan to work until 60, then just a little bit more. But one thing is sure: someone has to take over your company after you. But selling off the company is out of the question for you…

Could not the first employee ever take on this task? After all, he did his apprenticeship with you, became a master and leads the whole workshop anyway. You talk to him about it, he is happy and actually everything is clear. Until the first bad news comes for you from the bank in the credit check, because yourlong time employee does not have the necessary credit rating to take over the liabilities. For you, this means that you must remain in the commitment. That’s not what you imagined for your retirement. So sell it?

Horror »Free Market«
Looking for a buyer all by yourself in the open market – either a competitor or someone who is creditworthy – turns out to be very difficult. In most cases, they have no interest in your business, and the fact that you have to deal with the processes in it hinders potential buyers as much as you do in your research. You face the second bad news

The years pass on; you may already be in your mid-60s and still have no solution for the handover of your company. In fact, you’re ready to give it away, just to make sure you finally settle down and get rid of your worries.

So it is not uncommon for us today to meet entrepreneurs who have retired since long, but who are basically forced to continue their business. There is still a debt burden in the company, which must continue to be served. Often, no pension has been worked out and the life cycle continues to turn like a hamster wheel.

The solution: Medium sized with System
You do not have to sell off your company! The association “Medium sizedwith System” offers you and your company an opportunity to spread the risk across multiple shoulders. If you then want to go to your well-earned pension, you get through this previously carried out restructuring shares in the craft systematically – so the super ordinate structure in which small medium-sized craftsmen have joined. This collective distributes the risk. So you have the opportunity, despite a situation that you would basically need to continue to get out of this hamster wheel.

One example
Currently in East Germany, there are lots of entrepreneurs who are of retirement age and cannot leave their company because they are still tied to the bank with 80 percent debt. A successor – internally or externally – would have to take this burden on his shoulder. The result: You cannot find a successor.

Other advantages – not to be overlooked
By joining hands with Medium sizedwith System, even self made entrepreneurs, who in their view have exhausted everything humanly possible, still get ideas and impulses, which ways are still there, which till now even the bank has not mentioned. And that not only affects the liquidity or financing, but also the image of the company in the market. Topic attractiveness, get jobs, create apprenticeships, get the company. Do not literally throw one’s life’s work out of the window, but actually preserve it and get the value it deserves.

How to proceed:

  • Jump over your shadow and develop a willingness to try other ways to solve your problem.
  • Express the technical capacities and competences in your company.
  • Allow external competences with access into your company – for example, the commercial part can be taken over by third parties, the technical part remains with you.

If you find yourself in such situation and finally want a solution, please contact us!