Let me highlight some of the features unique to the Mittelstand model that I believe everyone should learn from – and imitate if they can.
Taking on debt is treated with suspicion.
Mittelstand companies are overwhelmingly privately owned, and thus largely free of pressure to provide shareholder returns.
So they don’t use outside equity. Indeed, Will Hutton has been telling us for decades how lovely it is that they rely upon bank loans instead. And they do finance themselves with debt.