Germany has one of the most developed interim management markets in Europe, with an estimated value of more than €2.75 billion. In this article we take a snapshot of the sector and look at why Interim Managers are so highly valued.
High quality managers in high demand
Germany has the highest number of Interim Managers (IMs) in Europe with around 12,600 currently working in a range of organisations at home and overseas.
They are in high demand. As of January 2023, 78% of managers were currently working on a project. On average these last for 11.6 months compared to nine months in France. 50% of managers find projects through Interim Management firms, and about a third via their own network. On average they work 158 days per year, which has been increasing since 2020.
The medium day rate for German Interim Managers is €1,188, varying between €800 and €2,300.
Leading key business activities
35% of Interim Managers lead projects related to finance, commercial performance, or human resources management. As the list of tasks carried out below shows, they are primarily involved in implementing transformations and driving change, which often requires the external perspective an IM can bring to an organisation.
- Transformation and change management: 29%
- Relay management: 27%
- Project management: 21%
- Restructuring: 17%
- Trade development: 5%
Looking ahead, due to the economic and geopolitical situation, 74% of German Interim Management firms anticipate an increase in restructuring projects. In addition, 31% of firms expect to see ESG-related issues have a significant impact on the IM market.
Valued by top companies
Increasingly, bigger companies are turning to Interim Management. As the figures below show, almost half of projects take place in companies with 250 to 999 employees, an increase of 16% compared to 2020. A further 40% take place in companies larger than 1,000 employees
- Enterprises with 99 to 249 employees: 14%
- Enterprises with 250 to 999 employees: 48%
- Enterprises from 1,000 to 9,999: 30%
- Enterprises with more than 10,000 employees: 10%
47% of IM professionals in Germany believe the uncertain economic landscape will lead to an increasing use of Interim Management.
Region-wide influence
According to an AIMP 2023 study, 93% of projects take place in the central European DACH region:
- 66% in Germany
- 16% in Switzerland
- 11% in Austria
Providing expertise across different sectors
IMs are making a positive impact in a diverse range of businesses. Traditionally they’ve been active in the automotive, mechanical engineering, chemistry, and pharmacy sectors, as well as in information and communication technologies. But those areas now account for less than half of projects overall, with the consumer goods sector (both food and non-food) on the rise.
Experience and professionalism count
According to an INIMA 2023 study, German managers are 57.6 years old on average and have generally been in the profession for more than 10 years.
Many IM companies and Interim Managers in Germany are also part of professional associations:
- The AIMP brings together German-language IM companies and publishes an annual study on market developments in the DACH region.
- DDIM is the largest German association of IMs. It represents the interests of its members, sets professional standards, and promotes Interim Management in Germany.
Valtus in Germany
We’ve seen the value IMs create for companies in Germany and how well regarded they are by German businesses, particularly those embarking on transformational change.
To help us respond more effectively to the needs of our clients in the DACH region, we established offices in Austria in 2022, and in Germany in 2024. Our international reach also gives us access to diverse insights we can apply across all the organisations we work with.
To find out how an Interim Manager could positively impact your business, get in touch.
Sources:
DDIM
AIMP study 2023
INIMA 2023 study
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