Insolvency Events 2025: Developments and Challenges

Current Trends and Developments

A published analysis by the Leibniz Institute for Economic Research Halle (IWH) shows a clear upward trend: The total number of personal and corporate insolvencies in January 2025 is 1,342, continuing the developments of the previous months of November and December. Compared to January 2024, however, there is an increase of 24%; compared to the overall level of the years before the Corona pandemic (2016-2019), the number has even increased by 49%.

Creditreform reports a figure of 22,400 corporate insolvencies for the full year 2024 – an increase of 24.3% compared to 2023 (18,020 cases) and the highest value since 2015 (23,180 cases). This illustrates the still high number of insolvencies and the ongoing impact of the difficult economic situation on companies. The steady increase is also an indication that the economic conditions will not recover in the foreseeable future.

Causes for the Increase in Insolvencies in 2025

A major cause for the current insolvency trend lies in the external challenges facing companies. These include the energy crisis: Persistent supply bottlenecks and rapidly rising energy prices are putting massive pressure on companies. On the other hand, there are regulatory hurdles such as stricter environmental and climate protection requirements as well as bureaucratic requirements that can hardly be managed without external support. Due to the current geopolitical events, companies are still struggling with global supply chain problems and rising raw material prices, which are reflected in production processes and sales expectations. Thus, the economic emergencies of companies are primarily triggered by external stress factors. The ongoing economic weakness in conjunction with higher interest rates is a direct consequence of high inflation. As a result, there is a significant increase in financing costs for companies – this is putting many companies to a severe test.

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Long-term Forecasts and Effects for 2025: No End in Sight?

The trend of rising insolvency figures until 2025 is not expected to improve: The energy transition, interest rate pressure and the unpredictability of global developments will continue to shape the economic environment. Due to the current framework conditions and a lack of political support, many companies see themselves forced to adapt their structures in order to remain competitive. Despite the high number of insolvencies, the IWH expects the figures to stagnate in the coming months: The early indicators collected by the institute indicate that there will be no significant increase in insolvency figures for February and March 2025. Nevertheless, companies should continue to monitor their situation vigilantly – and react in good time.

Effects on the Labor Market and Affected Industries

The rising insolvencies not only affect the companies, but also their employees: In January 2025, around 13,500 jobs in large companies that have filed for insolvency were affected. Although this is 20% less than in December 2024; however, the values are still significantly above the pre-pandemic level with an average of 110%.

The industries that were most affected by insolvencies last year include the service sector, the manufacturing sector and the construction sector. For these economic sectors, it could be particularly crucial in the coming months to develop viable corporate strategies and pool all synergies in order to meet the current challenges of the economy. This development illustrates that insolvencies in Germany not only affect small and medium-sized enterprises, but also pose considerable challenges for large employers.

Opportunities for Companies?

The persistently high number of insolvencies clearly shows: Companies need a forward-looking corporate strategy to protect themselves from further risks. It is therefore advisable not to underestimate the trend of increasing insolvency cases and to take early measures to stabilize the situation. In the midst of the upcoming change,
stark
partners
proves to be a valuable partner:
stark
partners
offers tailor-made solutions in restructuring and reorganization. With our expertise in the areas of (Distressed) MA, succession planning and value retention, we provide comprehensive advice to companies to master challenges in special situations.

We are currently supporting the following Distressed MA projects, among others, through exclusive mandates:

“We help you identify opportunities in the midst of challenges and find the right path.”

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Current Trends and Developments

Causes for the Increase in Insolvencies in 2025

Long-term Forecasts and Effects for 2025: No End in Sight?

Effects on the Labor Market and Affected Industries

Opportunities for Companies?

Related Posts

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starkpartners consulting GmbH,
Hauptstraße 92, 40668 Meerbusch, Germany
Email: office@starkpartners.de
Phone no.: +49 (0) 2150 7058 210

Member of the German Association for Mergers & Acquisitions (BM&a) – Active M&a Network & Industry Knowledge

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Current Trends and Developments

Causes for the Increase in Insolvencies in 2025

Long-term Forecasts and Effects for 2025: No End in Sight?

Effects on the Labor Market and Affected Industries

Opportunities for Companies?

Related Posts

Software as a value driver: M&A dynamics, valuations, and strategic options for medium-sized businesses

Successful transfer restructuring secures traditional Ortrander Eisenhütte foundry and creates new growth prospects

Commercial Property – Draschwitz, Ziegeleistraße 3

Active throughout Germany and worldwide

starkpartners consulting GmbH,Hauptstraße 92, 40668 Meerbusch, GermanyEmail: office@starkpartners.dePhone no.: +49 (0) 2150 7058 210

Member of the German Association for Mergers & Acquisitions (BM&a) – Active M&a Network & Industry Knowledge

Privacy PolicyImprintGlossary

starkpartners consulting GmbH,
Hauptstraße 92, 40668 Meerbusch, Germany
Email: office@starkpartners.de
Phone no.: +49 (0) 2150 7058 210