Elobau

Rethinking a family legacy: succession with steward ownership

In a nutshell

Established half a century ago, elobau is a globally active, family-run business in the engineering and manufacturing sector, headquartered in Leutkirch, Germany. As such, it stands as a beacon of the German Mittelstand. With a widespread presence in Europe, the Americas, and Asia, elobau has earned a reputation as a provider of cutting-edge technological products that help make industrial processes more efficient. elobau’s mission is to empower industries through smart, sustainable solutions, while also being a trusted, long-term partner not only for its customers, but also its employees, the environment, and society.

By 2010, second-generation owner Michael Hetzer began exploring alternatives to traditional family succession. Convinced that the company’s true value lay in its employees and viewing himself as a steward rather than an owner, he sought a structure that would safeguard elobau’s mission and independence beyond his tenure and family.

Drawing inspiration from forerunners like Bosch and Zeiss, Hetzer embarked on a six-year process to establish a steward-owned double-foundation structure, completed in 2016. This model separates voting rights (held by a family trust) from economic rights (held by a charitable foundation), ensuring elobau can never be sold, that leadership remains in the hands of qualified, value-aligned stewards, and that part of its profits supports charitable projects in education, integration, and environmental protection.

Today, elobau stands as a forerunner of sustainable succession in the German Mittelstand, showing that succession can extend beyond family lines to a “community of skills and values”. Hetzers journey reinforced his conviction that a dedicated legal form for steward-ownership is essential to make it more accessible, particularly for smaller companies.