1. What are the current drivers for mergers and acquisitions?
For many companies, especially medium-sized ones, higher requirements for critical company size, succession issues, or growing competitive pressure due to digital transformation and the rapid development of AI applications are reasons for their own M&A activities or merging with a suitable partner.
2. In which industries can increased M&A activity be expected?
This applies to almost all sectors. We are currently seeing above-average M&A activity in IT services & software and in the healthcare sector.
We expect to see a boom in M&A activity due to difficult economic conditions, particularly in the manufacturing sector, for example in the automotive industry and in mechanical and plant engineering.
“We will see activity in almost all industries. Digital and AI-driven mergers and acquisitions are a key driver of the M&A wave.”
Dr. Benjamin Klein, COO
3. Will cross-border deals involving German companies remain at a high level?
I assume so. However, companies in Germany are likely to be acquired more than they acquire abroad. In our view, the US will continue to be the most important buyer and target nation for German companies.
4. What can be expected in terms of company valuations?
Current purchase price expectations are likely to come under pressure due to the declining profit momentum of many companies. In the current environment, we will not see the highs in multiples that we had in 2021 and 2022 for the time being.