Significant differences by market segment

Market development is assessed differently depending on company size. The micro and small cap segment is slightly more optimistic than in 2024, while sentiment in the mid and especially the large cap segment has deteriorated further. Rising valuations are expected in the coming months. This may increase the completion rate and the willingness to start sales processes.

Motives for transactions: Focus on growth and market position

The main motives for acquisitions remain the strengthening of the market position and access to new markets. Know-how and technology factors also play a decisive role. This strategic orientation signals that companies are continuing to focus on expansion rather than primarily realizing cost synergies. Sales are primarily driven by corporate divestitures, succession planning and targeted growth. Companies in a “special situation” in particular are showing an increased willingness to sell.

Transaction aborts on the rise

Around 40% of respondents stated that they had canceled a transaction in the first quarter of 2025. The main reasons are diverging purchase price expectations, followed by due diligence findings and unexpected slumps in operating business.

Outlook for Q2 2025

Despite the still subdued overall climate, the rising valuation forecasts and the clear growth motives of companies give hope for a somewhat more stable second quarter. “The German M&A market continues to face challenges, particularly in the large-cap segment. At the same time, we are seeing the first positive developments in the smaller market segments. Companies are increasingly focusing on strategic growth, which speaks for exciting transactions in the coming months “, comments Jan Pörschmann, Chairman of the BM&A.

You can find the complete evaluation here: Study results – Climate Monitor Q1 2025

Der Beitrag BM&A M&A Climate Monitor Q1 2025: German M&A sentiment remains subdued – glimmers of hope in the small and micro-cap segment erschien zuerst auf Bundesverband Mergers & Acquisitions gem. e.V. (BMA).

The new contract includes a model company purchase agreement that has been available since July 2024, a standard guarantee catalog and other relevant documentation components. The aim of the model documentation is to make M&A processes more efficient, transparent and faster for SMEs.

“M&A as a means of corporate development and transformation has arrived in the German SME sector,” explains Jan Pörschmann, CEO of BM&A. “We are convinced that this agreement will help to increase the speed, transparency and efficiency of SME M&A processes and thus ensure the competitiveness of our companies on the international market.”

The model documentation was developed by the BM&A standardization working group under the leadership of Stephan Heinemann (Corporate/M&A Partner, Taylor Wessing) in cooperation with renowned commercial law firms such as ADVANT Beiten, EY LAW, HEUKING, MOOG, MOSBURG, Osborne Clarke, Reed Smith and Taylor Wessing.

“We are pleased to have developed balanced and practical contractual standards for medium-sized M&A transactions with this model documentation and made them accessible to everyone,” adds Stephan Heinemann. “Of course, this sample documentation is no substitute for legal advice in individual cases, but it will make a significant contribution to increasing the transparency and efficiency of negotiation processes.”

The high level of interest in the model company purchase agreement, which has been available since July 2024, is particularly pleasing – especially from W&I insurers.

The entire sample documentation is now available for download in German and English on the BM&A website.

The sample company purchase agreement for free download in the News & Media Hub

Der Beitrag Press release – German M&A Association presents new model documentation for small and mid-cap transactions erschien zuerst auf Bundesverband Mergers & Acquisitions gem. e.V. (BMA).

Working together for SMEs

The cooperation brings together two leading players with complementary strengths: BM&A contributes its expertise in networking and promoting M&A transactions, while BVK brings a broad network from the private equity and venture capital sector as well as extensive investor know-how.

A central component of the cooperation is the mutual associate membership of both associations. This enables close integration, the exchange of know-how and the implementation of joint projects in order to provide targeted support to the members of both organizations.

Dr. Ingo Krocke, CEO of BVK, emphasizes: “This cooperation creates a platform that facilitates access to capital and provides companies with targeted support. Medium-sized and technology-oriented companies in particular benefit from our joint commitment.”

Jan Pörschmann, Chairman of BM&A, adds: “Our members can benefit not only from new financing channels, but also from greater support in dealing with succession issues and improving the exit environment for SMEs.”

New perspectives for capital, succession and sustainable innovation

The cooperation has a clear focus on providing growth capital for SMEs and promoting innovative business models. In addition, BM&A and BVK are addressing the issue of succession in the SME sector – a decisive factor for the stability and competitiveness of the German economy. The focus is also on improving the exit environment for technology and medium-sized companies in order to strengthen Germany as a leading location for company sales and takeovers. At the same time, companies are supported in developing and scaling sustainable approaches – an aspect that is becoming increasingly important and is valued by investors.

“BM&A brings in-depth industry knowledge and a strong network to the cooperation in order to make M&A transactions in the SME sector even more successful,” explains Jan Pörschmann.

Dr. Ingo Krocke adds: “The combination of capital and expertise is crucial to mastering the challenges facing SMEs. Our collaboration offers the ideal platform for this, especially for companies with innovative and sustainable projects.”

Insights into the cooperation

The first concrete implementation of this partnership will be presented in the January issue of M&A REVIEW. In an interview, Dr. Ingo Krocke talks about the common goals, synergies and the importance of capital for innovation, sustainability and SMEs.

Please also read the news in the M&A Newsroom.

Der Beitrag Press release – BM&A and BVK enter into cooperation to strengthen SMEs and technological innovations erschien zuerst auf Bundesverband Mergers & Acquisitions gem. e.V. (BMA).

Key messages of the results

• The mood in the German M&A market remains tense in view of the economic uncertainties.
• Only 18.1% of respondents still see positive economic development in Germany, in contrast to higher estimates in Europe (22.2%) and globally (39.9%).
• Despite the challenges, the micro and small cap sector continues to show a slightly positive trend, while the large cap sector is experiencing a deterioration in sentiment for the fourth quarter in a row.
• The most important motives for acquisitions are to strengthen the market position and acquire expertise.
• Succession planning and strategic realignment are key drivers for company sales.
• Around 35% of the companies surveyed canceled planned transactions in the fourth quarter, often due to different purchase price expectations and unexpected operating declines.

“We are currently experiencing an extremely difficult market environment in which economic uncertainty and strategic realignment are key challenges,” explains Jan Pörschmann, CEO of BM&A. “The declining positive assessment of economic development in Germany shows that companies are increasingly taking a more cautious approach and, above all, want to strengthen their market position.”

The BM&A Climate Monitor shows that sentiment in the large cap sector is gloomy for the fourth quarter in a row. At the same time, the micro and small cap sector continues to see slightly positive developments despite the challenges. Compared to Q3, only 18.1% of those surveyed still rate the economic development in Germany as positive – a significant decline compared to the previous quarters.

“The top motives for company acquisitions continue to be the strengthening of market position and the acquisition of expertise. At the same time, succession planning and strategic realignment are increasingly driving sales,” Pörschmann continues.

One notable result of the current Climate Monitor is the increased number of transaction cancellations in the fourth quarter. Around 35% of the companies surveyed canceled a planned transaction, with diverging purchase price expectations and unexpected slumps in operating business being the main reasons.

“This development shows that many transactions are suffering under the pressure of an uncertain economic situation and high expectations of valuation developments. The market is reacting sensitively to changes, and these uncertainties are also reflected in the increased abandonment rates,” comments Pörschmann.

The results of the BM&A Climate Monitor for the fourth quarter of 2024 emphasize the need to react flexibly to economic challenges and make strategically sound decisions in order to secure market position in a volatile environment.

You can find the full evaluation here: Study results – Climate Monitor Q4 2024

Der Beitrag BM&A Climate Monitor shows difficult market environment in the fourth quarter of 2024 erschien zuerst auf Bundesverband Mergers & Acquisitions gem. e.V. (BMA).

Key messages of the results

• Positive development in the micro and small cap segment: Despite the general slowdown in the German M&A market, smaller companies continue to show an optimistic mood and positive growth forecasts.
• Shift in the main motives for acquisitions: Companies are increasingly focusing on cost synergies as the primary motive for acquisitions, although strengthening their market position remains of central importance.
• Global and European economic situation more positive than in Germany: While assessments of the economic situation in Germany are declining, the companies surveyed are more optimistic about global and European developments.

Weak market momentum requires strategic impetus

“Especially in times when the M&A business is rather weak, we as an association are trying to provide a lot of impetus, success stories and suggestions so that the strategic-transformative power of M&A is perceived more at the management levels of the soul of the German economy – among SMEs,” explains Jan Pörschmann, Chairman of the BM&A Board.

Different developments in different market segments

The survey results show that sentiment in the micro and small-cap sector is positive, while the outlook in the large-cap sector is gloomy for the third quarter in a row. In Q3, 25.3% of companies canceled transactions, mainly due to due diligence findings and diverging purchase price expectations.

Economic situation and valuation trends

The economic situation is viewed more positively globally and in Europe than in Germany. Compared to Q2, only 21.5% of respondents still see a slightly positive economic development in Germany, while 48.1% expect a positive global development. Company valuations are also assessed more cautiously than in previous quarters.

Motives for purchases and sales are changing

The main motives for acquisitions have shifted towards cost synergies, while strengthening the market position remains the most important motive. “It is clear that companies are taking a strategic approach and paying more attention to cost synergies in order to remain competitive in an uncertain economic environment,” continues Pörschmann. Succession and growth remain the main reasons for disposals, with traditional corporate divestitures also playing a role.

Success factors and strategic priorities

“Our aim is to strengthen German SMEs by providing targeted information and best practices in the M&A sector. Especially in challenging times, it is important that companies recognize the opportunities and use them strategically,” emphasizes Pörschmann. BM&A will continue to work on communicating the transformative power of M&A and supporting companies in their growth strategies.

The full analysis can be found on the website of our publication M&A Review:
Study results – Climate Monitor Q3 2024

Der Beitrag BM&A Climate Monitor for the M&A market: SMEs as the key to strategic transformation through M&A erschien zuerst auf Bundesverband Mergers & Acquisitions gem. e.V. (BMA).

The Bundesverband für Mergers & Acquisitions gem. e.V. (BM&A), founded in 2003 under the leadership of Jan Pörschmann, is an important interest group for M&A professionals from corporates, SMEs, private equity and all types of advisory services required in the context of M&A and transformations. The association promotes the exchange of experience at the operational M&A level in order to increase the efficiency of M&A processes. Through working groups and an extensive program of events, BM&A provides access to valuable M&A networks and industry-relevant contacts.

The idea behind the M&A Award:

The M&A Award was created in 2023 to highlight the positive aspects and successes of M&A transactions. While major failures often dominate the headlines, BM&A wants to use this award to highlight the outstanding achievements. In today’s world, M&A plays an important role in the transformation of business models. The award recognizes transactions that have been strategically thought through and successfully implemented. Criteria such as synergy effects, changes within the company, employee integration and the acquisition context are decisive. “The presentation of the M&A Awards is a wonderful opportunity to celebrate the outstanding successes in our industry and to share best practices,” said Jan Pörschmann, Chairman of the BM&A Board, during the festive gala event.

Every acquisition is unique.

The research team led by Prof. Dr. Florian Bauer, University of Bristol, and Alexander Griesmeier, Grant Thornton, prepared the data anonymously for the jury. This consisted of industry experts and the previous year’s award winners. The overall aim of the M&A Awards is to identify commonalities in outstanding acquisitions and to share these best practices with the members. Prof. Dr. Florian Bauer, head of the research team, is convinced: “Our work in preparing the data shows that strategically planned and well-executed transactions have a significant positive impact on corporate development.”

M&A Award Categories 2024: The winner is….

The categories for the Corporate Award were finally determined by the jury:

Infineon Technologies AG and Deutsche Bahn AG won the Finalist 2024 category

Best M&A Playbook: This category recognizes transactions that stand out for their clear strategy and precise execution. Particular attention is paid to the ability to learn from past transactions and use this knowledge in future acquisitions. The winner was: Altana AG

Best Infrastructure Deal for Germany: This category recognizes transactions that have a sustainable impact on Germany as a business location and living space and pursue ESG goals. The winner was: EnBW

Most Resilient M&A Team: This category honors M&A teams that excel through outstanding teamwork and the successful orchestration of various stakeholders. The winner was: STEAG

M&A for a Greater Good: This category recognizes transactions that pursue significant social goals in addition to economic ones and have a profound social and ecological impact. The winner was: Biontech SE

In the Advisor Awards, the jury honored digatus with the M&A Transaction Advisory award, Moog Partner received the award for Best M&A Legal Advisory and Marktlink won Best M&A Advisory .

“The M&A Awards 2024 celebrate excellence and innovation in the M&A world. Each of these categories highlights key aspects that make for successful transactions. We are proud to shine a light on the stories behind these successful acquisitions and recognize the best of the best,” says Alexander Griesmeier, Partner at Grant Thornton AG.

Der Beitrag Press release – Presentation of the M&A Awards 2024: Highlight of the M&A Summit in Munich erschien zuerst auf Bundesverband Mergers & Acquisitions gem. e.V. (BMA).

At a time when small and medium-sized enterprises (SMEs) are increasingly facing global challenges, M&A is gaining in importance as a strategic instrument for securing Germany’s future and attractiveness as a business location. M&A transactions offer a wide range of opportunities: they enable companies to strengthen themselves in a targeted manner through acquisitions, tap into new markets and integrate innovative technologies. For SMEs in particular, these opportunities are essential in order to survive in international competition.

Despite the clear advantages, many SMEs are reluctant to engage in M&A transactions. One of the main reasons for this is the often high transaction costs and uncertainty with regard to contract design. This is where the new standard company purchase agreement comes in. Standard contracts create clarity and transparency, reduce transaction costs and speed up the entire process. By using a standardized set of contracts, entrepreneurs can be sure that they are relying on proven and legally sound principles.

“The new model company purchase agreement is a significant step towards promoting M&A in the SME sector. It provides a solid and reliable basis that makes the entire transaction process more efficient and transparent,” says Jan Pörschmann, Chairman of the BM&A. “We are convinced that this agreement will help to strengthen the SME sector in Germany and ensure the competitiveness of our companies on the international market.”

The renowned law firms ADVANT Beiten, EY LAW, HEUKING, MOOG, MOSBURG, Osborne Clark, Reed Smith and Taylor Wessing, coordinated by Stephan Heinemann of Taylor Wessing, played a key role in the development of the model agreement. “Their commitment and expertise have made it possible to create a well-balanced and practical model documentation that comprehensibly illustrates the key points of a share purchase agreement,” says Stephan Heinemann, partner at Taylor Wessing.

“We are convinced that this standard company purchase agreement will make an important contribution to promoting M&A in the German SME sector. Together, we can secure the future viability of our companies and further strengthen Germany’s attractiveness as a business location,” says a delighted Pörschmann.

The sample company purchase agreement for free download in the News & Media Hub

Der Beitrag Press release – German M&A Association presents new model company purchase agreement for medium-sized transactions erschien zuerst auf Bundesverband Mergers & Acquisitions gem. e.V. (BMA).

Munich, April 2024. The Bundesverband Merger & Acquisition gem. e.V. (BM&A) presents the results of its latest member survey. In the second quarter, a total of 68 companies took part in the survey, including consultants, corporates and SMEs. The evaluation shows, among other things, a cautiously positive view of the market in the coming months as well as a higher abandonment rate for transactions.

Readiness for corporate divestiture increases

The positive view of the development of valuations has increased – in Q1, the majority of respondents saw these as stable to declining. Now 34% of the companies surveyed have a positive outlook for the coming months. European and global M&A developments continue to be viewed optimistically. At the same time, the mood is stagnating in terms of the increase in new inquiries and positive expectations regarding project completions.

While there is a constant level of interest in acquisitions and disposals, more and more companies are considering a corporate divestiture. This development can be observed at the media company Pro-Sieben-Sat-1, for example: Handelsblatt reported that the major shareholder MFE demanded that non-core businesses such as Flaconi and Verivox be divested. “This focus on the core business reflects what is currently happening on the market,” explains BM&A CEO Jan Pörschmann. In addition to the issue of succession, the sale of companies in the secondary segment is becoming increasingly important for the respondents to the Climate Monitor when considering disposals.

More terminations due to due diligence findings

There is an upward trend in the termination of transactions: 30% of respondents in the survey stated that they had terminated ongoing negotiations prematurely. The main reason for this continues to be major differences in purchase price expectations. There has also been a sharp increase in terminations due to findings from due diligence.

Companies cite access to technologies, sales synergies and the acquisition of expertise as the main motives for successful acquisitions. From this, the association deduces that the M&A market will see exciting transactions in the coming years that are geared towards growth and further development.

An anxious look ahead

“Above all, our survey shows a slightly positive development of the M&A market from a low level,” says Pörschmann, summarizing the results. Price expectations and due diligence results are slowing down the movement somewhat. At the same time, the takeovers that have taken place indicate a willingness to invest in innovative ideas and new markets.

You can find the full analysis on the website of our publication M&A Review: Study results – Climate Monitor Q2 2024

Der Beitrag BM&A Climate Monitor for the M&A market: Corporate divestiture on the rise erschien zuerst auf Bundesverband Mergers & Acquisitions gem. e.V. (BMA).

For two decades, BM&A has been committed to promoting and supporting mergers and acquisitions in Germany and beyond. During this time, the association has witnessed numerous developments in the industry and has established itself as an important network for experts and companies in this field. The M&A Awards are a highlight of the year for the M&A community and will be presented at the M&A Summit on July 11 in Munich. This event provides a unique platform to recognize the best in the industry and celebrate innovation and excellence in the M&A world.

The M&A Awards are presented in the categories small, mid and large cap. There is also an award that recognizes consulting firms involved in outstanding transactions. The data collection (through interviews and questionnaires) takes place from April to June. An expert jury, consisting of the winners of the previous year, then decides on the winners of the awards.

As in 2023, the award ceremony will also take place this year as part of the M&A Summit. The two-day conference on July 10-11 is aimed at corporates and offers a wide range of lectures, discussions and workshops, which are mainly organized by members and M&A experts of the BM&A from academia and practice. Here you will have the opportunity to find out about the latest developments and trends in M&A, learn from best practices and make and deepen valuable contacts with members of the association. In addition, the conference offers numerous networking opportunities to get in touch with other participants and exchange experiences. Use this opportunity to expand your network and benefit from the experience of other M&A experts.

The evening event with the M&A Awards ceremony on July 11 is open to all BM&A members. The ticket contingent is limited. Tickets will go on sale shortly.

We cordially invite you to be part of this important event and look forward to receiving your applications and nominations from third parties. Please contact the BM&A office at verwaltung@bm-a.de to submit your application or recommendation. You will then be contacted regarding the next steps.

Use this opportunity to present your successes and network with the leading minds in the M&A industry.

Der Beitrag Application phase for M&A Awards 2024 opens erschien zuerst auf Bundesverband Mergers & Acquisitions gem. e.V. (BMA).

Over the course of 2023 and at the start of the new year, many companies were faced with significant challenges that had a major impact on their business objectives. Political uncertainties at an international level, rising energy costs, the disruption of global goods flows and inflation have made strategic planning considerably more difficult. In view of these complex dynamics, it is not surprising that many companies are increasingly focusing on the topic of “transformation and change”.

Acquisitions are therefore crucial to driving this change forward. Although these are often associated with large corporations, SMEs play a central role in the M&A market in Germany. Given the current environment, companies of all sizes are being encouraged to think about transformation strategies.

The Bundesverband Mergers & Acquisitions gem. e.V. (BM&A), which has been intensively involved in the area of company acquisitions and sales since 2002, has once again launched a study this year in cooperation with its publication organ M&A REVIEW and the University of Bristol. This survey is the third follow-up to the 2022 study and aims to take stock of medium-sized companies that are either involved in acquisitions or are affected by acquisitions by their competitors.

Does your company meet the above criteria or do you have relevant contacts in your network and are you willing to actively shape the future of the M&A market and share your perspective? Then please take part in our survey on transformation and change or forward the survey and help us gain important insights for the further development of our industry.

You can access the survey HERE.

In recognition of your participation, you have the opportunity to receive the results of the study and a 50% discount code for the participation fee at Shift & Change 2024- Der BM&A Mittelstandstag. To take advantage of this offer, simply enter your contact details at the end of the questionnaire.

Look forward to the presentation of the results at the business event “Shift & Change 2024 – The BM&A SME Day” on May 14, 2024 in Düsseldorf. Further information on the event and registration can be found here [ Link here with https://shift-and-change.com/ ] If you cannot make it to our event in May: We are organizing regional days afterwards (announcement via: https://lebenswerk-online.de/)– certainly also in your area.

We look forward to hearing from you and getting your perspective. Thank you for your participation!

Der Beitrag SME study M&A 2024 open erschien zuerst auf Bundesverband Mergers & Acquisitions gem. e.V. (BMA).