The Croatian economy is facing a structural shift that will shape the business landscape in the coming decade. Although it may seem that everything is under control, behind the stable financial indicators lies a generational transition. Indeed, thousands of Croatian companies are run by owners of advanced age, with the average age of owners of these enterprises being 72 years. This demographic fact necessitates thinking about the future of businesses built on decades of effort.
A large number of owners, specifically more than 7,000 active companies, whose owners are of advanced age, form the backbone of the Croatian entrepreneurial sector. These companies together employ nearly 60,000 people and generate revenues exceeding 9 billion euros. Despite financial strength, the ownership structure remains fragile as it relies on individual owners whose age corresponds to the retirement age for pension. The children of these owners, although they exist, often have their own careers, which further complicates the issue of inheritance.
Therefore, part of the business will not be taken over by children automatically, but will have to rely on other takeover models. In such situations, it is essential to find a new owner, hand over the business to employees, or, in the worst case, close the company. Closing a successful and healthy company due to the simple retirement of the owner represents the worst possible outcome, both for the owner and for employees and the local community.
Selling a company to a new owner allows the value created over the years to continue to live. The buyer takes over a business that is already functioning, and thus creates the possibility for its further development. In this process, the mediator, or business broker, plays a key role. This specialist must understand the business, the relationships within the company, as well as the broader market conditions. The mediator ensures discretion and professionalism in the entire process, which is crucial for a successful transition.
When purchasing an existing business, it is necessary to check financial results, debts, contracts, employees, as well as legal and tax risks. Business brokers, as expert partners in this process, have experience working with companies and their owners, and can help avoid potential pitfalls in the process. The silver tsunami, therefore, represents not only a challenge but also an opportunity for a new generation of owners. In the coming decade, two groups will be increasingly looked at: those exiting business created over decades, and those entering entrepreneurship or accelerating the growth of their own companies. This transition, although challenging, can bring new opportunities to the Croatian economy, provided it is utilised correctly.
