Market Insights Financial Corporate Finance

Mergers and Acquisitions - Germany

Germany

The transaction value in the Mergers and Acquisitions market is projected to reach €54.03bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 14.47% resulting in a projected total amount of €61.85bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to €234.60m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (€1,260.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in Germany is experiencing a significant uptrend, attracting both domestic and international investors.

Customer preferences: German investors tend to favor strategic acquisitions that complement existing business operations, aiming for synergies and market consolidation. International investors, on the other hand, are drawn to the strong German economy, technological advancements, and skilled workforce, seeking opportunities for expansion and diversification.

Trends in the market: One noticeable trend in the German M&A market is the rise of cross-border transactions, driven by globalization and the pursuit of new markets and technologies. Additionally, there is an increasing interest in sustainability-focused acquisitions, reflecting the growing environmental awareness and regulatory changes in the country.

Local special circumstances: Germany's robust industrial base, particularly in sectors like automotive, engineering, and technology, has made it a prime target for M&A activities. The Mittelstand, which comprises small and medium-sized enterprises known for their innovation and quality products, also plays a significant role in the M&A landscape, attracting both domestic and foreign buyers.

Underlying macroeconomic factors: The stability of the German economy, low interest rates, and favorable regulatory environment have created a conducive atmosphere for M&A transactions. Additionally, the country's strategic location in Europe and its access to a large consumer market have further fueled M&A activities, making Germany a key player in the global M&A landscape.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.