Think Global, Act Local: Why the Mittelstand Is Attractive to International Leadership Talent

I teach in Germany and the USA, strategically support start-ups, and coach entrepreneurs and executives. Yet there is one thing that fascinates me time and again: the German Mittelstand.

Why? Because it embodies a combination that has become rare worldwide: economic substance, responsibility, influence, and sustainability. Many Mittelstand companies are hidden champions – with innovative products, high technical quality, and global demand. And yet, outside their industries, they remain hardly visible, even though according to the IfM Bonn, over 99% of all companies in Germany are SMEs. This is precisely where an often overlooked opportunity lies – especially for international talents eager to take on responsibility.

What makes the German Mittelstand so attractive for successors?

Germany is globally known for large corporations like Siemens, BMW, Mercedes, or Adidas. However, for younger executives, access to genuine leadership roles within these structures is often difficult – flat hierarchies usually exist only on paper.

In the Mittelstand, it’s different: career paths are shorter, the scope for influence greater, and contact with reality more direct. Still, many talents overlook this opportunity because Mittelstand companies are hardly recognized publicly as employers.

Nevertheless, the German Mittelstand remains particularly appealing:

• The education system produces well-trained employees (80% of all apprentices are employed by SMEs, source: IfM)
• Legal certainty is high
• Capital requirements are comparatively low, as many companies are sold below market value – often without professional advisory

How can international executives contribute to the German Mittelstand?

A promising entry point is the Management Buy-In (MBI). Here, an external executive – including from abroad – not only takes over operational management but simultaneously becomes a shareholder. This model ideally combines entrepreneurship, personal responsibility, and ownership.

Those who undertake a Management Buy-In (MBI) do not just buy into a company – they assume responsibility for an established corporate culture. And this is where great potential lies: many Mittelstand companies are hidden champions – highly specialized, regionally rooted, internationally sought after. What they often lack, however, are digital skills, access to new markets, or modern work models.

What opportunities can successors bring to the company?

Unlike traditional family-internal succession, an MBI brings a neutral external perspective – and that can be a real asset. Someone who did not grow up with the company sees untapped potential, outdated routines, or new market opportunities. Above all, possibilities to increase efficiency and effectiveness through targeted digitalization!

International MBI candidates can contribute significantly here:

• global networks,
• multilingualism, with German language skills being essential,
• experience with remote leadership,
• and an understanding of agile scaling.

Tomorrow’s leaders no longer need to come from the same town as yesterday’s founders – they must recognize the vision and have the courage to develop it further.

Many Mittelstand companies have only just begun their digital transformation. Especially for MBI candidates with tech experience from countries like the USA or India, there is enormous growth potential here: automating processes, scaling business models, rethinking customer access. But digitalization is not just technology; it’s also culture.

What can successors learn from entrepreneurial personalities?

In a conversation with Wolfgang Kiessling, founder of Loro Parque and SIAM Park in Tenerife, I realized how much substance classic entrepreneurship holds. Mr. Kiessling still leads his company with passion at an advanced age, emphasizing values such as responsibility, perseverance, and groundedness. His succession is arranged – through a combination of family trust, clear division of tasks, and long-term perspective. For example, he has handed over all digital matters to his son.

For MBI candidates, this offers an important lesson: taking over a company means taking on a piece of identity. It’s not just about KPIs and market shares but about relationships, culture, and purpose. Modern successors should therefore invest not only in due diligence but also in listening. Behind many Mittelstand companies lies a lifetime’s work.

However, it is also crucial: those who take over a company should align with the organization’s values – and be ready to navigate both good and challenging times. Entrepreneurs invest not only capital but identity and lifetime. Their greatest asset is often not the company shares but the business itself – a network, a team, an idea, and ultimately often a “Made in Germany” product.

How important is language for professional entry into the German Mittelstand?

A leadership survey involving 1,420 executives in German companies, in which I participated as scientific director, clearly shows: the biggest hurdle in the German Mittelstand remains the language. International executives who want to establish themselves must speak solid German. It’s not about perfection but communication – within the team, with customers, and with authorities. Language proficiency is the key to integration – as it is everywhere in the world.

Study – Leadership Survey

International succession requires new models

As a professor, coach, and consultant, I accompany many people who work internationally but consciously want to engage entrepreneurially in Germany or Europe. Many no longer think in linear careers but in project cycles. They are not looking for the “secure employee existence” but responsibility.

MBI offers exactly that:

• Entrepreneurial independence without starting from scratch.
• Access to established teams, products, and customers.
• The opportunity to bring international experience into local structures.

This requires new approaches:

• virtual onboarding phases,
• hybrid working,
• participation models across borders.

Succession must be thought of flexibly – just like the life realities of many modern executives.

What makes successful virtual onboarding & remote leadership?

Especially in internationally influenced succession processes, remote leadership is a central topic. Successful virtual onboarding requires more than technology:

• intensive initial contact phases,
• regular check-ins,
• and above all: clear, honest feedback, both positive and negative.

Because in the virtual world, facial expressions and gestures are missing – feedback must therefore be explicit, nuanced, and regular. Only in this way can trust and development arise.

And: working from home does not mean no one wants to come to the office anymore. Rather, it’s about flexibility during special life phases, e.g., a move, a child starting school, or a visit to family abroad.

The Mittelstand can score points here because it operates less rigidly than corporations: working time models can be individually designed, structures are more adaptable – and decision-making paths are shorter.

What mindset is needed for successful business succession in Mittelstand companies?

Anyone investing in the Mittelstand today and wanting to take over a company should ask themselves: Do I fully stand behind what I represent there? Am I ready to be not just a manager but an entrepreneur? Because that is what makes the difference: investment is not only in a company – but in an attitude. Taking responsibility, shaping, growing.

Especially for international leadership talents, the Mittelstand is an exciting alternative to corporations or start-ups. Moreover, an MBI offers the chance to combine local strength with global experience, rethink products, digitalize structures, and live leadership anew. Because those who think globally and act locally can turn a traditional company into a future-proof success story. Ultimately, however, one must be able to speak German to succeed in the end!