German Mittelstand's Acquisition Landscape to Shift Significantly in Next Five Years
The German Mittelstand's acquisition landscape is set for significant shifts in the coming years. Strategic buyers currently hold the upper hand in the world market, while entrepreneurs often delay succession planning. Inflation and interest rates have minimal impact on SME transactions, and financing is readily available.
The stock market today has favoured buyers since 2022, with strategic players leading the charge. Entrepreneurs often procrastinate on succession planning due to denial or hopes of passing the reins to their children. However, a massive succession wave is expected in the next five years, with outcomes varying case by case.
The industry and manufacturing sectors are particularly active, driven by transformation and economic structure. Sales decisions in the SME sector are often personal or strategic, not stock market-driven. Transactions remain stable, with less movement in large deals due to geopolitical uncertainties. Once entrepreneurs commit to succession, price expectations of buyers and sellers typically adjust. Financing is not a barrier, with sufficient liquidity in the stock market.
The German Mittelstand's acquisition landscape is poised for significant changes in the next five years. Strategic buyers currently dominate the world market, and while entrepreneurs often delay succession planning, a substantial wave of succession is expected. Transactions remain stable, and financing is readily available, making the sector resilient to inflation and interest rates.
